KUALA LUMPUR: Small businesses and individual borrowers could soon find it easier to obtain credit as Mastercard and CTOS Malaysia partner to strengthen credit risk management across the financial sector.
In a joint statement, both companies said the collaboration introduces new credit risk transformation services for banks and lenders, aimed at improving loan approvals, reducing defaults, and optimising portfolio growth.
By combining CTOS’s long-term customer credit data and scorecards with Mastercard’s global analytics and consulting expertise, the initiative seeks to help financial institutions make faster and better-informed lending decisions.
Mastercard said the partnership brings international best practices to Malaysia, where annual risk reviews using private credit bureau data are less common than in markets such as India and the Philippines.
“Global approval rates for credit cards and personal loans typically exceed 40 per cent, and similar initiatives elsewhere have achieved increases of five to ten per cent in unsecured loan approvals while maintaining risk-adjusted returns.
“CTOS’ data provides a detailed view of borrowers’ performance histories and group-level insights on rejected applications, while Mastercard’s consulting teams turn these datasets into actionable recommendations for banks,” it said.
Both companies said the result is an enhanced, data-driven framework that expands credit access without compromising prudence.
Mastercard Country Manager for Malaysia and Brunei Beena Pothen said the collaboration supports Malaysia’s long-term goal of inclusive economic growth.
“With 48 per cent of SMEs in Malaysia still unserved or underserved, this collaboration directly addresses a gap and supports the growth of small businesses and entrepreneurs, who represent 96.1 per cent of all enterprises in Malaysia as of 2024.
“By increasing access to credit, it aligns with the national agenda under the 13th Malaysia Plan to build a resilient, high-income and inclusive nation,” she said.
CTOS Digital Berhad Interim Group Chief Executive Officer Kevin Loh said the partnership strengthens the credit ecosystem through analytics and innovation.
“By pairing CTOS’s depth of local credit data, governed under the Credit Reporting Agencies Act, with Mastercard’s global expertise, we are enabling financial institutions to assess risk with greater precision and confidence,” he said.
He added that the result is “a more inclusive and resilient credit environment that promotes wider access to financing while upholding high standards of governance and data integrity.”
The statement said the collaboration will also help banks identify growth opportunities among existing customers, enhance repayment assessment, and expand the use of private bureau data — efforts that both companies believe will modernise Malaysia’s financial ecosystem and drive inclusive growth nationwide.
