PETALING JAYA: Bank Islam Malaysia Bhd and local financial technology company Global Psytech Sdn Bhd have come together to implement a credit risk
assessment solution known as General Financial Insights (GFI), which estimates the risk of providing financing to an applicant, even in the absence of a traditional credit history.
According to a statement, GFI will allow a financial institution to finance aspiring entrepreneurs who might otherwise be sidelined from the financial system, particularly those in the micro, small & medium enterprises (MSME) sector.
Bank Islam CEO Mohd Muazzam Mohamed said the partnership between the bank and Global Psytech further improves the existing underwriting and credit-scoring models, as well as capitalising on the advancement of digital technologies in finance.
“GFI will contribute to bridging the financing gap that affects MSMEs and further catalyse MSMEs contribution to Malaysia’s economy. GFI has the potential to promote more equitable economic growth, financial inclusion and increased participation of young business owners.
“This partnership will also make Bank Islam a leader in utilising advanced risk assessment technologies that will benefit MSMEs,” he said.
According to the statement, GFI accurately estimates the risks associated with financing, using behavioural analytics and machine learning algorithms.
Within minutes, GFI automatically generates detailed reports that will help a financier decide whether to approve or reject an application.
Following the implementation of this system, Bank Islam said it foresees an increase in approved financing applications, especially for MSME clients, as GFI will expedite and simplify current procedures.
“Global Psytech has leveraged its extensive experience in developing digital assessment solutions by offering a technologically advanced credit risk assessment system that can benefit financiers as well as MSMEs.
“This method will allow financiers to provide appropriately-priced credit efficiently and securely to foster the growth of the entrepreneurship ecosystem in Malaysia,” Global Psytech CEO Haniza Yon said.