Malaysian National Co-operative Movement (ANGKASA) and CTOS Data Systems signed a partnership agreement which will give financial institutions a more comprehensive set of information to assess loan applications.
This partnership will now enable CTOS Data Systems to access payroll deduction data from ANGKASA, effectively expanding CTOS’s data coverage beyond conventional banking loan repayment information from Bank Negara Malaysia’s CCRIS. Through the Angkasa Salary Deduction System (SPGA), ANGKASA currently manages payroll deduction data amounting to 3,223,109 records with a net payroll deduction of RM1.165 billion (Statistics from May 2017).
According to Eric Chin, CEO of CTOS, “This strategic collaboration will bring a host of benefits to all parties involved. We believe that by working together, we will be able to expand access to credit, increase financial stability and elevate the integrity of the financing sector in Malaysia.
This collaboration will also help the Co-operative Sector reduce business risks as well as the ratio of ‘Non-Performing Loans’.
With this new alliance, the payroll deduction information by ANGKASA will now be integrated as part of CTOS’s credit management suite of solutions and made available to all users of CTOS, enabling financial institutions to check if a civil servant has an existing loan commitment which is already beyond the 60 per cent of one’s gross salary.
This will greatly aid in providing a more comprehensive and holistic view of the loan applicant’s debt commitment to credit grantors, and also indirectly assists loan applicants from facing the risk of being overburdened by overextending their level of indebtedness.
Many Malaysian businesses and financial institutions rely on CTOS to evaluate potential customers and business partners. With over 27 years of experience CTOS has aided several thousands of credit grantors make better and more accurate credit decisions. CTOS has also introduced a consumer based offering and to-date, have helped over 500,000 consumers gain better insights on their own credit standing.