PETALING JAYA: Alliance Bank Malaysia Bhd has taken a significant step in its digital transformation journey with the recent launch of an AI-powered Retail Loan Origination System (RLOS) developed in partnership with CTOS Data Systems Sdn Bhd and Juris Technologies Sdn Bhd.
The platform, which went live after a 12-month development period, is designed to streamline the bank’s retail loan operations, enhancing efficiency, accuracy and overall customer experience.
The RLOS, built on a robust and scalable architecture, automates end-to-end processes, from lead management, digital onboarding and loan document processing to origination, decisioning, disbursement and credit administration.
It currently supports multiple products, including mortgages, personal loans and credit cards, with plans to expand to share margin financing and embed generative AI capabilities in the near future.
According to Alliance Bank group chief consumer banking officer Gan Pai Li, the system has already delivered substantial improvements in operational efficiency.
“We did it in phases, product after product. In the last six months, we have seen a productivity uplift across all three products. Mortgages, which used to take seven days, can now be completed in three days with full documentation. Personal loans now take one day and credit cards can be processed within the same timeframe,” she said.
Gan highlighted that while monetary savings were not the immediate objective, the bank achieved significant operational efficiency.
“The whole idea of having, for the first time, an automated workflow allows us to see who entered the system, how fast our credit underwriters processed applications and how productive they were. These improvements are measurable and impactful for our lending operations,” she said.
The platform also incorporates advanced data intelligence provided by CTOS, ensuring more consistent and accurate credit decisioning while reducing human biases.
Gan said the bank is looking at further leveraging AI and data analytics over the next three to five years.
“We hope that AI capabilities will allow us to score customers and estimate potential credit exposure within minutes. This will enable straight-through processing for most products and allow us to serve new segments, such as gig economy workers, more effectively.”
CTOS interim group CEO Loh Kok Leong noted that the system helps the bank evaluate both traditional and alternative credit data.
“By embedding insights into the decisioning process, we reduce human bias and improve the speed and accuracy of approvals. This also allows Alliance Bank to reach underserved segments and enhance financial inclusion,” he said.
JurisTech CEO See Wai Hun explained, “Our platform handles everything from digital onboarding and prescreening to loan documentation and disbursement. It is highly configurable, allowing workflows to be tailored to different customer segments and is designed to accommodate the progressive approach of Alliance Bank.”
According to See, the bank has begun implementing deterministic AI for specific tasks such as document verification and prescreening, ensuring decisions are consistent and fair.
“Our approach ensures minimal errors and reduces the risk of discriminatory outcomes. While human oversight remains essential, these AI agents can autonomously handle repetitive, rule-based tasks, freeing staff to focus on higher-value activities,” she said.
The collaboration among CTOS, JurisTech and Alliance Bank is seen as a blueprint for Malaysia’s digital lending landscape. The integration of AI, automated workflows and data intelligence offers the potential to accelerate approvals, reduce operational bottlenecks and enhance the speed and reliability of retail lending.
