Bank Muamalat to use SAS' credit scoring solution

• Solution enables application and behavioural scoring for virtually all lending products
• Will be used to assist Bank Muamalat executives across its many services and departments

ISLAMIC financial provider Bank Muamalat and business analytics software and services company SAS Malaysia have announced the integration of SAS’ Credit Scoring technology into the bank’s operations in Malaysia.
 
In a statement, SAS Malaysia said this was a strategic initiative that would allow bank executives to employ more consistent, transparent and objective credit evaluation tools.
 
“As any prudent business leader would know, managing risk is a delicate yet all-important aspect of business,” said Bank Muamalat Malaysia Berhad chief executive officer Mohd Redza Shah Abdul Wahid.
 
“The Credit Scoring solution provided by SAS will allow us to assign scores to credit applications as well as existing accounts using the very latest technology available, while simultaneously ensuring that we are able to benchmark with internationally recognised standards at all times,” he added.
 
Bank Muamalat was established in 1999 and is licensed under the Islamic Banking Act (IBA). It has 58 branches (including six kiosks) nationwide, in addition to its electronic channel, encompassing i-Muamalat, its Internet banking solution; and e-Muamalat, available at almost 240 locations, its network of ATMs, CDMs, and CDTs.
 
The bank is a member of the DRB-HICOM Berhad Group where the public listed company owns 70% of the Bank’s shares with the remaining stake held by Khazanah Nasional Berhad, the Malaysian Government’s investment arm.
 
SAS Malaysia said its Credit Scoring solution utilises the very latest in data analytics technology to enable lenders to rapidly develop, validate, deploy and monitor credit scorecards in a low-risk and integrated business environment – in a faster, more cost-effective and more flexible way than previously possible.
 
The solution enables application and behavioural scoring for virtually all lending products and will be used to assist Bank Muamalat executives across its business and consumer banking, credit assessment, regional approving centre and risk management departments.
 
“By equipping our executives with these modern analytics capabilities, we aim to provide enhanced customer engagement experiences to existing customers,” said the bank’s chief risk officer Mohd. Asri Awang.
 
“It will also allow us to embark on developing more proactive and personalised solutions to new customers so as to meet their unique credit needs and requirements,” he added.
 
The big data technology and services industry continues to grow in prominence throughout Asia Pacific as more businesses continue to appreciate the role and value of insights from data in making successful business decisions, SAS Malaysia said.
 
Projections by the research firm IDC places the projected value of the industry throughout the region in the region of a staggering US$1.76 billion by 2016.
 
“With consumers becoming increasingly discerning with purchase decisions, it is vital for businesses to maintain a clear appreciation of market interests and trends, and to be able to do so at all times,” said SAS Malaysia managing director Andrew Tan (pic).
 
“Data has thus become one of the most important commodities of our times,” he said, adding that businesses that can transform insights from data into executable solutions, services or products for their customers would gain a significant competitive edge.
 
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