KUALA LUMPUR: Orion IXL Bhd will provide financial technology (fintech) solutions to SME Bank by creating a framework for traditional and alternative credit scores for the bank’s customers.

Orion IXL, which is a fintech and business solutions provider had on Friday signed a memorandum of understanding (MoU) with SME Bank, an agency under the Ministry of Entrepreneur Development.

Both parties will collaborate and adopt a two-pronged approach. The first is by using credit scores to assess the SMEs’ financial strength and credit worthiness. The second is to match the SMEs with suitable financing from the bank.

Orion IXL is the developer of several technological advances, including a fintech solution which specialises in financial transaction management using the latest technology such as big data analytics based credit scoring engines, AI and block chain smart contract solutions.

Orion IXL group chief executive officer Mohamad Shaharul Mohamad Shariff 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.

It would also leverage on the vast historical data and artificial intelligence (AI) based credit scoring of Malaysian SME businesses which would enable it to predict the outcome of the financing payment.

Shaharul pointed out that under the collaboration, Orion IXL would also ccarry out simulation process and other statistical tools to assess the risk of singular and/or cumulative tranches of financing.

SME Bank group president/CEO Aria Putera Ismail said the MoU was the first step for the bank to achieve its digital transformation initiatives to enable SMEs grow their businesses by using digital technology.

“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.