LenddoEFL and CTOS FAQs

Leveraging alternative data helps financial institutions make accurate, reliable and fast data-driven decisions across the customer lifecycle, growing their business, reducing acquisition and operational costs and improving customer satisfaction.

By removing the barrier of needing a credit history, the potential to bring millions of qualified but unserved consumers in view of the mainstream financial institutions will be beneficial for consumers to have a path toward credit access and improved financial options.

Yes, this is a secure connection. Please be reminded that the customer has OPTED-IN to this service, where their Google account is connected. Customers can review the permissions and information they have shared, by going to the Google settings > Permissions section. LenddoEFL and CTOS DO NOT HAVE ACCESS OR SHARE personal information, username or password of the customer’s Google account to anyone. Information is only collected once from their Google account, which is at the point of application. We do not collect or extract information again, without their permission. Lastly, the customer can OPT OUT from this service at any time.

• We look at behavioural data that consumers have provided explicit permission to use, which in the absence of traditional credit bureau data, can be particularly useful in assessing the ability of an unbanked consumer to repay their debts.
• LenddoEFL only uses data from sources which have been specifically allowed by users through opt in permissions and in compliance with the respective digital platform provider and mobile device policies.

No, neither LenddoEFL nor CTOS will be reading posts on social networks.

• LenddoEFL’s technology provides valuable information that help make more informed decisions about providing credit.
• LenddoEFL models have shown to do a good job in separating consumers who will go on to pay their debts as agreed from those that don’t.
• Only data characteristics that differentiate payment behavior come into a model. This helps lenders to safely and responsibly extend credit to those consumers that would have previously been denied due to a lack of traditional credit history. Characteristics such as race, religious preference, and marital status are explicitly not used.

LenddoEFL and CTOS provide information to Financial Institutions to help them make better decisions. The Financial Institutions typically combine this information with other data they have and rules they have established to make the final decision. We support the Financial Institution in complying with regulatory requirements on answering questions from applicants when required.

Over 7 years LenddoEFL has analysed non-traditional data provided by millions of consumers and has created a unique set of features which are predictive of creditworthiness. This data provides insights into the consumer’s behavior (e.g stability) and personality traits (e.g dependability) that help answer the questions that financial institutions need to answer in unsecured lending such as:

• Can I prove the identity of the individual?
• Is the individual of good character?
• What is the capacity to pay?

No. LenddoEFL’s algorithms access information that an applicant has provided permission to access, which may include information from an email account. The content of emails aren’t of interest, what is of interest are the “meta” data of the digital footprint. We’re looking for evidence of behavior such as stability and consistency which empirically correlate with credit risk.

Yes. Each applicant agrees to allow LenddoEFL use of their information before we process any data. This is done via our button on a web application form or before downloading an app and through the Financial Institution and LenddoEFL’s Privacy Policies and Terms of Use.

Consumers that are normally denied credit due to a lack of previous credit history will now be able to get access to life improving financial services.

Not everyone who is underserved has a digital footprint but it’s very large. The World Bank estimates that roughly 64% of Malaysians have a mobile phone and 77% have internet access, and both are growing. There is a significant overlap between the unbanked and those with a digital footprint.

A thorough market assessment and consultation with the relevant Malaysian authorities has been made, and there are ongoing discussions to ensure we meet all requirements. The regulator is fully supportive of this work and helping to push it forward even.

• To ensure privacy, a consumer’s identifiable information or “digital footprint” is only accessed and used when specific permission and explicit consent have been given by the consumer for a specific purpose with a specific financial institution. .
• The processed data or result is never shared with other lenders or third parties except the Financial Institution where permission has been given by the consumer
• Any personally identifiable information about an applicant will only be stored for the maximum time necessary for the provision of our result, to enable us to comply with our legal obligations under a contract or applicable laws, regulations and other accounting, contractual, fiscal and tax requirements. We may retain anonymized Information for a longer period as necessary for the purposes of our ongoing improvement of our Services and otherwise required for our legitimate business purposes

Both LenddoEFL and CTOS use world-class security standards in the transfer, storage and processing of information to ensure that the data is kept secure.

The new service will be available using the same channels as CTOS partners use today.

• CTOS, Malaysia’s largest private credit reporting agency, is a registered Credit Reporting Agency under the Credit Reporting Agencies Act 2010.
• Established in 1990, CTOS has over 25 years of experience in aiding credit grantors make better credit decisions.
• CTOS utilises information from its users and the public domain to support informed decisions and facilitate fact-based risk management when providing credit extension.
• CTOS delivers a complete portfolio of credit reports and value-added services and is widely used by the country’s banking and financial institutions, insurance companies, large corporations, legal firms, businesses and state and statutory bodies
• Our newest solution, the CTOS Thin-File Score, aims to include Thin-file individuals and companies, with little or no credit history, into the credit-ecosystem by using alternative data to form prediction models.

• LenddoEFL is a pioneer in using alternative data to predict credit risk. This partnership with LenddoEFL allows us to leverage on their patented technologies and introduce the CTOS Thin-File Score.
• The CTOS Non-traditional Data Score enables lenders to reach out to a previously under-served population of consumers individuals and companies by building predictive models based on alternative data. This new solution aims to promote increased financial inclusion.

• Awareness of financial health goes hand in hand with increasing disposable income. Naturally, as disposable income grows, financial health comes to the fore of most people’s minds.
• It should however be noted that Malaysia as a whole, is catching on to the importance of personal financial health quite quickly, and as long as CTOS and other bodies keep working on financial education and inclusion a priority, the outlook is promising.

• Measures that can distinguish credit risks from good loans among thin-file customers is indeed something that has been lacking from Malaysia’s financial eco-system.
• One of the reasons that we are partnering up with LenddoEFL is to fill this identified service gap in financial health measurement.
• We hope that the much needed CTOS Thin-File Score will allow many more Malaysians access to the credit they deserve.

• Our records are as up-to-date as the official registries like Bank Negara (BNM) and Suruhanjaya Syarikat Malaysia (SSM).
• Our dispute incidence rate is 0.01%, which can be understood as 99.99% accurate.
• Our dispute resolution rate is 92%. This means that more than 9 cases out of 10 are successfully closed, most within the same day itself. The rest are escalated to external registries for investigation.
• With the integration of CTOS Thin-File Score into our suite of products, we intend to maintain this level of integrity going forward.
• When it comes to credit reports, alternative datasets are a great source of current, accurate information and typically have better coverage and are thus more easily applied when compared to traditional data. For example, mobile phone saturation in Malaysia is expected to reach 140% in 2018, much higher than the number of Malaysians who know their credit score.

• Unfortunately, this is a misguided perception. CTOS is a private credit rating agency registered with the Ministry of Finance under the Credit Reporting Agencies Act 2010.
• CTOS is legally empowered to collect and process pertinent information to prepare credit report for credit grantors. This information is then used alongside other data by credit grantors and lenders to accurately evaluate the credit worthiness of individuals and businesses.
• CTOS merely provides credit information obtained from public sources and its subscribers to credit grantors and lenders. Decisions on credit applications are made exclusively by the credit grantors themselves, according to their risk appetite, business policies and strategies.

• The general guideline is that a ‘good’ CTOS Score will fall in the range of 697 to 850. This, however, is not a hard and fast rule and does not necessarily mean a lower score is a ‘bad’ score.
• When banks and lenders evaluate your application for loans or new credit, they may take other factors into consideration besides your credit score.
• However, having a credit score of 697 and above can be extremely beneficial for you, as most banks and credit providers would view you as a prime customer. A good credit score can increase your chances of getting a loan, get you better interest rates and speedier loan approval, among other things.

• Having a poor credit history or a low credit score can seriously impact people financially. One thing that can happen is you could be denied a line of credit. A low credit score indicates to lenders that you are a high-risk borrower and they may not be willing to lend you money.
• Another issue that could arise from having a low credit score is that even if you aren’t denied credit, it could be more expensive for you to get credit. You may have to pay more in fees or a higher interest rate, which increases your monthly payments.

By regular monitoring of their CTOS Score, consumers can both satisfy themselves and have peace of mind that their credit health is good, or identify the areas that need improvement, and take action to change those aspects.

Yes, they can.  We have 7 branches nationwide (KL, Klang, Kuantan, Johor, Penang, Kota Kinabalu & Kuching) that the public can visit without having to set appointments, or consumers can call our Personal Enquiries customer service line on 03-2722 8833. For more information, visit our website at www.ctoscredit.com.my