KUALA LUMPUR (May 10): Alliance Bank Malaysia Bhd has targeted to grow its retail consumer loan book by 1.5 times to RM36 billion in the next five years.

Group chief executive officer Kellee Kam said this would be achieved by transforming its retail loan origination system (RLOS) capabilities, following the credit transformation project in which it partnered with CTOS Digital Bhd.

He said the project would allow the bank to increase its loan approval performance, and to evaluate the “unbanked” and “underbanked” segments comprising consumers whose traditional credit history is so limited that they do not have credit scores and easy access to credit.

“We do simulations of approval rate increases, speed to market, and how quickly customers can come back again, and we are targeting the underbanked and unbanked markets,” he told a press conference after the signing of the contract.

“We are about RM24 billion today in terms of retail credit. We want to take it up to about RM36 billion within the next five years,” he said.

CTOS Digital group CEO Erick Hamburger said the five-year contract worth RM14 million, signed between Alliance Bank and CTOS Data Systems Sdn Bhd, involves digital innovation and automation to enhance existing processes, and to transform the credit decision process as part of its implementation.

This will enable Alliance Bank to provide fast, convenient and personalised services that are relevant to meet the changing needs of customers, he said.

Extensive data analytics and cutting-edge solutions enable the group to provide added value to clients by accelerating growth, and enhancing and expanding decision-making capabilities, he said.

The new RLOS will also feature credit transformation capabilities, which will serve as tools to improve productivity and turnaround time.