U.S. companies are racing to bring credit-scoring models to Malaysia, according to a recent Wall Street Journal report.
The report said the credit-scoring companies aim at helping Malaysia widen its access to credit at a time when heavy borrowing has already made the country one of Asia’s most indebted.
A California-based Fair Isaac Corp., known as FICO, plans to announce that it is partnering with Malaysian credit-reporting agency CTOS Data Systems to roll out a FICO credit score to financial institutions in early 2015, according to the report.
Credit-reporting companies TransUnion and Experian are also partnering with Malaysian firms to develop credit scores they hope will become a standard to gauge risk in the industry.
The report said such development is potentially significant for Malaysia’s economy. If it enables lenders to more accurately assess the risk of borrowers paying their bills, it could make them more comfortable about extending credit in the country.