CTOS Digital makes Indonesia and Philippines acquisitions as part of its ASEAN ambitions

• Aims to create alternative data platform for ASEAN
• Acquisitions align with vision of advancing financial inclusion in region

Malaysian based CTOS Digital Bhd has announced the acquisition of telco credit scoring companies in Indonesia and the Philippines, marking its inaugural entry into Indonesia while expanding its market presence in Philippines where in 2021 it acquired CIBI Information Inc. (CIBI), the Philippines credit reporting agency.

The company said this reinforces its commitment to driving financial inclusion across the region and is a milestone in its expansion journey. It already owns a 24.825% in Thailand-based, Business Online PCL (BOL) while in Malaysia, it acquired a 49% stake in Juris Technologies Sdn Bhd in Feb 2022 for US$44.25 million (RM205.8 million) and has a 57.67% in RAM Holdings Bhd, a provider of independent credit ratings, research, training, risk analysis, ESG analytics and bond pricing.

The acquisitions include 100% equity interest in Finscore Inc. (via Fintech Platform Ventures Pte. Ltd.), in the Philippines for US$5.9 million (RM27.5 million); and 80% equity interest in PT Prime Analytics Indonesia (via Alt Decisions Pte. Ltd.), a new and fast-growing credit scoring company in Indonesia for US$475,000 (RM2.2 million). CIBI Information Inc. (CIBI), the Philippines credit reporting agency,

"We are excited to embark on this remarkable journey as we enter the dynamic markets of Indonesia and the Philippines," said Erick Hamburger (pic), Group CEO of CTOS Digital.

As CTOS Digital integrates its capabilities with the acquired telco credit scoring companies, it aims to leverage their strong market presence and expertise to provide a suite of credit-related products and services.

In conjunction with the acquisitions, CTOS Digital is set to establish a leading alternative data platform, revolutionizing credit assessment and empowering financial inclusion in the ASEAN region.

The alternative data platform will play a pivotal role in addressing the challenges faced by traditional credit scoring models, which often overlook individuals without a substantial credit history. By leveraging alternative data, such as mobile phone usage, payment behavior, and digital footprints, CTOS Digital intends to create a more comprehensive credit risk profile for borrowers, enabling lenders to make more informed and responsible lending decisions.

"This strategic move aligns perfectly with our vision of advancing financial inclusion and bringing superior credit solutions to individuals and businesses throughout the ASEAN region. These markets have tremendous potential for loan growth, and by catering to their needs, we aim to empower individuals, boost entrepreneurial endeavors, and stimulate economic development," said Erick.