Terry KS Mastercard and CTOS Malaysia have entered a strategic collaboration to enhance credit risk management and improve access to financing for individuals and SMEs, combining global expertise and local data to boost loan approvals while maintaining prudent risk standards.
MALAYSIA, 24 OCTOBER 2025 – Mastercard and CTOS Malaysia have announced a strategic collaboration to revolutionize credit risk transformation services across Malaysia’s financial ecosystem. The partnership aims to strengthen credit underwriting, loan approvals, portfolio growth, and collections for financial institutions by integrating Mastercard’s global expertise with CTOS’ extensive local credit database and analytics.
The initiative introduces global best practices in credit risk management to Malaysia, targeting both individuals and small to medium-sized enterprises (SMEs). Similar programs globally have led to a 5–10% increase in unsecured loan approvals while maintaining risk-adjusted returns, underscoring the potential benefits for Malaysian lenders and borrowers alike.
“This collaboration with CTOS is another step forward in Mastercard’s commitment to expanding access to credit,” said Beena Pothen, Country Manager, Malaysia and Brunei, Mastercard. “With nearly half of Malaysia’s SMEs still unserved or underserved, this partnership addresses a critical gap and supports the growth of small businesses — a key driver of Malaysia’s inclusive and high-income agenda under the 13th Malaysia Plan.”
By merging CTOS’ long-term credit information and proprietary scorecards with Mastercard’s advanced data analytics and consulting capabilities, the initiative empowers banks to make more informed lending decisions. This data-driven approach enables lenders to improve loan approval rates, reduce defaults, and optimize portfolio performance.
Currently, approval rates for credit cards and personal loans from open-market sourcing hover around 40% globally. Malaysia’s lower figures are largely attributed to limited use of private bureau data — a gap the partnership aims to close. CTOS provides long-term data sets, summarised scorecards, and performance insights on previously rejected applicants, giving banks a more holistic view of borrower behavior.
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, governed under the Credit Reporting Agencies Act, with Mastercard’s global expertise, we are enabling financial institutions to assess risk with greater precision and confidence.”
Beyond underwriting, the partnership will help financial institutions identify new growth opportunities among existing customers, such as enhancing credit lines, pursuing up-sell and cross-sell strategies, and improving collections management through better risk segmentation. Over time, this initiative is expected to drive wider adoption of private credit bureau data, modernize Malaysia’s financial infrastructure, and promote inclusive economic growth.