Credit Bureau (Singapore) Pte Ltd (CBS) and Experian Information Services (Malaysia) Sdn Bhd signed a memorandum of understanding to develop a two-way cross-border credit reporting service designed to allow individuals to apply for consented credit reports across Singapore and Malaysia, the two bureaus announced on 9 June. The bureaus said the initiative aims to enhance financial inclusion, strengthen credit risk assessment and support the growing economic integration between the two markets.
SERVICE DESIGN AND CONSENT MODEL
The MOU sets out a framework to facilitate consented cross-border credit report applications for individuals with financial footprints in either country. For financial institutions, access to cross-border credit data can provide a more holistic view of an applicant's financial obligations, the bureaus said.
The project focused on establishing a mechanism for consumers to grant permission for their credit data to be exchanged across borders. The bureaus said data protection, regulatory compliance and consumer consent were foundational to the initiative.
The framework is to define the roles of a 'Source Bureau' and a 'Processing Bureau', secure mechanisms for obtaining consumer consent to a one-time release of the credit report, data-protection safeguards, and commercial and governance models. The MOU did not set a launch date or name participating lenders.
MARKET CONTEXT AND IMPLICATIONS FOR LENDERS
The bureaus said the initiative may particularly benefit digital-native workers, entrepreneurs and professionals whose financial footprints span both jurisdictions, who could otherwise be treated as "new-to-credit" applicants when they move between Singapore and Malaysia.
For lenders, the bureaus said, cross-border credit data could support stronger digital underwriting, reduced cross-border fraud risk and more confident expansion into adjacent markets.
The bureaus said the collaboration is aligned with the Johor-Singapore Special Economic Zone (JS-SEZ), which places strong emphasis on digital industries, data-driven enterprises and technology-enabled services.
The bureaus said they would work within their respective legal frameworks and engage the relevant authorities; no rollout schedule was announced.
Sources: Fintech News Singapore