Image credit: The Malaysian Reserve
KUALA LUMPUR: Bank Islam Malaysia Bhd and Global Psytech Sdn Bhd are collaborating to offer an innovative credit risk assessment solution called General Financial Insights (GFI).
Bank Islam said GFI would estimate the risk of providing financing to an applicant, even in the absence of a traditional credit history.
It added that GFI allows a financial institution to finance with confidence to aspiring entrepreneurs who might otherwise be sidelined from the financial system, particularly those in the micro, small and medium enterprises (MSMEs) sector.
Bank Islam chief executive officer Mohd Muazzam Mohamed said the partnership was aimed at addressing the credit gap for MSMEs, while improving 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,” he said in a statement today.
Muazzam said the partnership would also make Bank Islam a leader in utilising advanced risk assessment technologies that will benefit MSMEs.
“We endeavour to strengthen the role and impact of Islamic finance by adopting the principles of Value-based Intermediation (VBI) as advocated by Bank Negara Malaysia.
“It is at the heart of our business model in delivering a sustainable performance with a strategic focus on supporting economic, social and environmental development, with emphasis on the MSME sector. Hence, we are always on the lookout for fresh and innovative ideas to assist our clients in those sectors,” he said.
Global Psytech chief executive officer Dr Haniza Yon said the company had leveraged its extensive experience in developing digital assessment solutions by offering a technologically advanced credit risk assessment system.
“This method will allow financiers to provide appropriately-priced credit efficiently and securely to foster the growth of the entrepreneurship ecosystem in Malaysia,” she added.