Financial technology (FINTECH) and business solutions provider Orion IXL Berhad today signed a Memorandum of Understanding (MoU) with SME Bank, an agency under the Ministry of Entrepreneur Development, to provide FINTECH solutions by creating a framework for traditional and alternative credit scores for SME Bank’s customers.

Under the MoU, Orion IXL and SME Bank will work together and adopt a two-pronged approach by using the credit scores to assess the financial strength and credit worthiness of the SMEs and match it with suitable financing from SME Bank that will fill the void on the financial needs of the entrepreneurs.

Mohamad Shaharul Mohamad Shariff, Group Chief Executive Officer of Orion IXL 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.

Aria Putera Ismail, Group President/Chief Executive Officer of SME Bank said, “The MoU is the first step for SME 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.” He added, “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 Center of Excellence (CoE) for SME Development.”

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.