Orion IXL to offer Fintech solutions in Indonesian market

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KUALA LUMPUR (April 15): Financial technology and business solutions provider, Orion IXL Bhd is embarking on the first overseas roll-out of its financial technology (Fintech) solutions for Indonesia’s market, in a partnership with PT Kirana Investima Nusantara.

Group chief executive officer Mohamad Shaharul Mohamad Shariff said a memorandum of understanding between both parties had been signed to set up the framework for the collaborations.

"The collaboration is to provide our technology for loans management system as well as credit scoring and also analytical together with artificial intelligence (AI) to process micro-financing for 75,000 provinces in Indonesia.

"They will be using micro-financing to develop all these provinces and the loans are to be disbursed through cooperatives," he told reporters after the group's extraordinary general meeting here, today.

He said a discussion on the contract and business structure will be held next month.

"We have already started talks on the technicals because we will be doing technical customisation due to the different language and regulatory.

"So we will be doing technology development in the next couple of months and discuss phases of jobs and timeline based on their requirement," he added.

Mohamad Shaharul said the Indonesian market will be tapped in stages.

"For our computerised maintenance management system (CMMS) business, we have customers all over the world but as for fintech, this is the first venture.

"I foresee that in a couple of years, the Indonesian market will further expand and overtake Malaysia in terms of market capitalisation," he added.

Mohamad Shaharul said the group is also looking at securing recurring-based revenue through long term contracts, either in the local or foreign market such as its 15-year agreement with MyAngkasa Holdings Sdn Bhd.

The agreement was inked by its affiliate company, Sukaniaga Sdn Bhd to develop MyAzZahra system.

The company also hopes to secure a 10-year deal with SME Bank, following their recent MoU to provide fintech solutions by creating a framework for traditional and alternative credit scores for the bank’s customers.

Orian IXL Bhd today obtained shareholders approvals for its proposed issuance of 179.69 million new shares at 15 sen per unit, which is expected to raise RM27 million.

About RM10 million of the proceeds would be used to acquire 10 per cent equity in Sukaniaga, RM16 million to develop MyAzzahra system while the remaining RM950,000 would be utilised to fund the exercise.