Malaysia credit rating agency incorporates MyDigital ID for more secure KYC

CTOS Digital Berhad, a major credit reporting agency in Malaysia, has sealed a partnership deal with the country’s national digital ID authority to streamline digital Know Your Customer (eKYC).

Going by the Memorandum of Understanding (MoU), CTOS is incorporating MyDigital ID, Malaysia’s government-issued digital ID, into its customer verification process to make it more frictionless and secure.

The digital ID authority said in a LinkedIn post that the partnership will go a long way in strengthening digital trust in Malaysia’s financial ecosystem, reduce fraud risk, improve compliance, and encourage stronger adoption of the national digital ID.

The government says it intends to have at least 13 million people registered for the digital ID by the close of this year, but opinions are divided on whether the ID should be made mandatory.

“With the National Cyber Security Agency, this collaboration will bring secure, government-verified digital identity into financial services, enabling safer onboarding, reducing fraud, and giving Malaysians greater confidence in their digital transactions,” the ID authority said.

“Together, we are building a trusted, inclusive, and resilient digital economy in line with the MADANI Economy and the Malaysia Digital Economy Blueprint,” it added.

The General Manager for Group Risk and Compliance at CTOS, Sue Ling Lim, described the partnership as “a significant milestone”, adding that with it, they become the first credit reporting agency in Malaysia “to take this step towards strengthening digital trust and enabling secure, seamless identity verification.”

“I am proud to have been part of the core team that made this possible. This collaboration is just the beginning of an exciting journey, and I look forward to contributing further to Malaysia’s digital transformation,” Lim said.

Mandatory SIM registration with MyDigital ID soon

Meanwhile, as part of a push to encourage stronger adoption of MyDigital ID and also to strengthen national security, the government has announced plans to make MyDigital ID mandatory for SIM card registration.

Communications Minister Datuk Fahmi Fadzil made the announcement during a recent press conference, saying the move also aims to curb the misuse of prepaid SIM cards, according to Lowyat.net.

Fadzil said telcos will receive guidelines from the Malaysian Communications and Multimedia Commission on how to proceed with the move, whose implementation is expected to begin by the end of this year.

Mandatory SIM registration is a policy in a good number of countries, with many of them citing national security as the prime reason.

Article Topics

digital ID  |  digital identity  |  financial services  |  identity verification  |  KYC  |  Malaysia  |  MyDigital ID  |  SIM card registration