KUALA LUMPUR, 23 October 2025 —Mastercard and CTOS Malaysia have announced a strategic collaboration to deliver credit risk transformation services that enhance loan approvals, portfolio growth, and collections for financial institutions.
The partnership aims to bring global best practices in credit risk management for individuals and SMEs to Malaysia, where similar initiatives have historically increased unsecured loan approvals by 5–10% while maintaining risk-adjusted returns.
The collaboration will improve access to financing for small businesses and consumers with established credit histories. By combining CTOS’s extensive credit database and local scorecards with Mastercard’s global data analytics and consulting expertise, the partnership will enable financial institutions to make better, faster, and fairer lending decisions.
“This collaboration with CTOS marks another step in Mastercard’s commitment to expanding access to credit,” said Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard. “With 48% of SMEs in Malaysia still unserved or underserved, this partnership directly addresses a critical financing gap. It supports the growth of small businesses and entrepreneurs, who represent 96.1% of all enterprises in Malaysia, in alignment with the 13th Malaysia Plan’s goal of building a resilient, high-income, and inclusive economy.”
Driving Financial Inclusion Through Data and Innovation
Globally, approval rates for credit cards and personal loans sourced from open markets are typically above 40%. In Malaysia, however, such rates remain lower due to the limited use of private credit bureau data in risk assessments.
Private bureaus like CTOS maintain long-term credit histories, comprehensive scorecards, and aggregated performance data on rejected applicants, insights often unavailable through traditional banking systems. By integrating this data with Mastercard’s advanced analytics, financial institutions can transform credit underwriting policies, improving approval rates while reducing default risks.
Kevin Loh, Interim Group CEO of CTOS Digital Berhad, said: “This collaboration represents a meaningful step forward in strengthening Malaysia’s credit ecosystem through advanced data analytics and innovation.
“By pairing CTOS’s depth of local credit data with Mastercard’s global expertise, we’re enabling financial institutions to assess risk with greater precision and confidence. The result is a more inclusive and resilient credit environment that promotes wider access to financing while upholding the highest standards of governance and data integrity.”
Empowering Banks and Borrowers Alike
Beyond risk management, the collaboration will help banks identify growth opportunities among existing customers such as credit line improvements, cross-selling, and up-selling, while maintaining prudent governance.
It also strengthens collections management by helping institutions assess repayment trends, prioritise high-risk accounts, and take pre-emptive action to mitigate potential losses.
In the long term, the Mastercard–CTOS partnership aims to accelerate the adoption of private credit bureau data, modernise Malaysia’s financial ecosystem, and promote inclusive growth. By enabling more data-driven lending decisions, it empowers financial institutions to expand responsibly while opening access to financing for historically underserved individuals and SMEs.
