KUALA LUMPUR: Fintech and business solutions provider Orion IXL Bhd sees the electronic online loan application system – MyAzZahra system – providing a boost to its earnings for the financial year ended June 30, 2019.
The MyAzZahra system was developed for the Cooperatives and Member Cooperatives of Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa).
Orion IXL group CEO Mohamad Shaharul Mohamad Shariff said on Friday the company would receive a transactional fee for every loan approved under MyAzZahra.
“It is definitely a good, solid venture for us to embark on. We have the first-mover advantage in the country as a pioneer in providing Fintech solutions for non-bank financial institutions and related industries.
“The potential of the business is huge, and hence, moving forward, we are looking to deliver a consistent growth in terms of financial performance,” he added at the launch of the MyAzZahra portal Entrepreneur and Development Minister Datuk Seri Mohd Redzuan Yusof.
Angkasa is a cooperative which represents Malaysia’s cooperative movement at the national and international levels. As end-2017, Malaysia had 14,000 cooperatives with 6.5 million members.
Mohamad Shahrul estimated at least 200,000 members from various cooperatives would use the portal within the first year of it being launched, with more than RM1 billion worth of loans being processed in the first year (2019) and growing exponentially to RM3 billion by 2020.
The MyAzZahra system is hinged on block chain and big data analysis, and will incorporate an in-house credit rating engine based on artificial intelligence (AI) provided by Orion IXL.
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.
While the technology is widely used in finance-related industries, its core big data and AI engine can be independently used for various other industries.
Speaking to reporters after the launch of MyAzZahra Portal, Mohamad Shaharul said over the next few months, MyAngkasa Az Zahra Sdn Bhd (MyAngkasa Az Zahra) plans to provide its service to between eight and 12 largest credit cooperatives.
“Our aim is for MyAzZahra to be linked with most, if not all, of the 12 largest credit cooperatives in the country by the end of 2019,” he said.
According to the Cooperative Societies Commission of Malaysia the country’s credit and non-credit cooperatives lent out RM6.7bil in 2017, comprising mainly personal loans to government employees largely.
In October 2018, Orion IXL made its foray into fintech industry through Angkasa. It got a big break in the big data and AI space when its associate company Sukaniaga Sdn Bhd bagged a contract to develop and manage a fintech system for Angkasa.
Under the agreement, Sukaniaga and MyAngkasa Holdings Sdn Bhd, a unit of Angkasa have set up a special purpose vehicle — MyAngkasa Az Zahra – to undertake the project.
Sukaniaga will hold 75% of the shares in the joint-venture company and MyAngkasa will own 25%.
The collaboration will see MyAngkasa Az Zahra providing exclusive online digital end-to-end solutions from the initial stages of loan application, to the loan approval process for a period of 15 years via a build, operate and maintain business model.
The MyAzZahra system should enable Angkasa to boost the speed and efficiency of processing loan applications, increase the number of loan applications, which should make it a viable competitor to other methods of obtaining loans.