PETALING JAYA: Orion IXL Bhd has signed a memorandum of understanding (MoU) with Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank), to provide fintech solutions to the bank.
Under the MoU, Orion IXL will create a framework for traditional and alternative credit scores for SME Bank’s customers. The two parties will also work together and adopt a two-pronged approach by using the credit scores to assess the financial strength and credit worthiness of SMEs and match it with suitable financing from SME Bank.
Orion IXL group CEO Mohamad Shaharul Mohamad Shariff said the company will leverage on alternate data streams like SMS, email, social media and industry trends to assess SME Bank’s customer credit worthiness.
“We will also leverage on the vast historical data and artificial intelligence (AI) based credit scoring of Malaysian SME businesses which will enable us to predict the outcome of the financing payment. Orion IXL will also conduct any simulation process and other statistical tools that would help assess the risk of singular and/or cumulative tranches of financing,” he added.
SME Bank group president and CEO Aria Putera Ismail said the MoU is the first step for the bank towards achieving its digital transformation initiatives that is expected to be a game changer on how SMEs can be supported using digital technology in growing their businesses.
“In creating the right environment and framework that would enable SME Bank to translate the efforts into effective solutions for the SMEs, the bank has revised its vision to become the leader in SME ecosystem by creating value creation for beyond financial services while the new mission of SME Bank is to be the centre of excellence for SME development,” he said.
The MoU will enable both parties to identify a suitable financing processing platform by leveraging on robotic process automation (RPA) to improve performance and at the same time reducing costs.
RPA is a software robot that automates tasks that are performed by humans. RPA will assist SMEs to easily seek and obtain financing using its simple, easy and intuitive interface.
The collaboration will also look into the enhancement of a digital market place for SMEs to interact with each other and to conduct business to consumer and business to business opportunities.
Orion IXL will offer strategic consultation and advice in AI, machine learning and block chain to SME Bank.
Source: The Sun Daily