Bank Islam to implement credit-risk assessment solution

Bank Islam Malaysia Bhd has partnered with financial technology company Global Psytech Sdn Bhd to offer General Financial Insights (GFI) — an innovative credit-risk assessment solution.

Bank Islam said GFI would estimate the risk of financing an applicant, even in the absence of a traditional credit history.

GFI would allow banks to confidently provide credit facilities to aspiring entrepreneurs, particularly micro, small and medium enterprises (MSMEs), who might otherwise be sidelined from the financial system.

Bank Islam chief executive officer Mohd Muazzam Mohamed said the partnership was aimed at bridging 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 could promote more equitable economic growth, financial inclusion and participation of young business owners, he said in a statement yesterday.

Muazzam said the partnership would make Bank Islam a leader in the adoption of advanced risk assessment technologies that would benefit MSMEs.

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 will allow financiers to provide appropriately-priced credit efficiently and securely to foster the growth of the entrepreneurship ecosystem in Malaysia,” she added.