THE EDGE MALAYSIA (March 10 2025): FOR those who do not own a motorcycle, Parkson Credit probably doesn’t ring a bell. But for bikers and dealers across Malaysia, it is a household name in motorcycle financing. Over the past decade, Parkson Credit has transformed from a start-up into one of the country’s leading hire purchase financiers, known for its innovation and digital-first approach.

Parkson Credit was incorporated under the umbrella of the Lion Group in 2014, leveraging the conglomerate’s deep roots in the motorcycle and financing industry. However, the road to success was anything but easy 一especially when the company ventured into an industry dominated by established foreign players with deep pockets and decades of experience.

“Motorcycle financing was already a well-established market with big players. And for a new company like ours to break in, we had to offer something different,” Parkson Credit CEO Danny Poh Wan Chung says.

Parkson Credit knew that traditional methods would not suffice; it had to innovate and that “something different” turned out to be its digitalisation approach. From revolutionising motorcycle hire purchase financing with a fully online application process to streamlining dealer partnerships, the company has set new industry standards.

Before Parkson Credit entered the scene 10 years ago, motorcycle financing was a tedious，paper-based process. Customers filled out lengthy forms, dealers had to manually submit applications and approval times could stretch to days.

PARKSON CREDIT SAW AN OPPORTUNITY TO CHANGE THAT.

“We pioneered the first fully online financing application for motorcycles in Malaysia,” Poh recalls.“Initially, there was resistance. Dealers were used to the old way of doing things. But once they saw how much faster and more convenient it was they adopted it.”

What started as a digitised loan application system soon expanded into a fully automated financing ecosystem. Today, everything from application submission to payment processing is handled online. Dealers can access settlements and manage transactions seamlessly, reducing paperwork and improving efficiency.

“Now, it’s the industry standard,” he notes.“If you don’t have an online financing system, dealers won’t recommend your services.”

Despite its status as a home-grown company, Parkson Credit has managed to carve a niche for itself. By focusing on dealer partnerships rather than aggressive direct marketing, the company has built a strong network of trusted collaborators.

“Unlike traditional financiers that rely on brand recognition, we let our dealers be our voice, ” he says. “They recommend us because they trust our system, our efficiency and our commitment to making their lives easier.”

WEATHERING THE STORM

By its fifth anniversary, Parkson Credit was on an aggressive growth trajectory. Then came Covid-19. Like many businesses around the world, Parkson Credit faced an unprecedented challenge when the pandemic struck. Instead of retreating it responded with resilience.

“The pandemic tested our resilience,” says Poh. “There was uncertainty from all corners- our stakeholders, our customers and even our bankers”

But thanks to its cloud-based system, Parkson Credit’s operations continued uninterrupted. 

“Our competitors had to shut down but we were able to work remotely without any disruption,” he explains. “Customers could still apply for loans, make payments and access support, all online.”

Rather than merely surviving the pandemic, Parkson Credit used the crisis as an opportunity to accelerate its digital transformation.

It launched i-Tolong, a financial distress assistance programme providing much-needed relief to struggling customers. At the same time, it doubled down on digital transformations.

The company analysed changing consumer behaviours and adapted its services to meet evolving needs. This strategic foresight paid off一 once the economy reopened, Parkson Credit grew at an even faster pace.

Its technological edge gave it a competitive advantage. Parkson Credit’s third-generation automated credit operating system (Acos) became a game changer, everaging artificial intelligence (Al)-driven risk analysis to ensure responsible lending while streamlining approvals.

“We don’t engage in deposit-taking like traditional financial institution, so we have to be smarter in how we manage costs,” he reveals. “Technology allows us to absorb increases in operating expenses without passing them on to customers.”

By fully integrating predictive analytics into its credit system, Parkson Credit reduced reliance on manual intervention, enhancing both speed and accuracy. The result? Faster approvals and a more seamless customer experience.

“Our system is built in-house, which gives us the flexibility to adapt quickly," he explains. “Al can help with automation, fraud detection, and customer service enhancements. The more we streamline operations, the more cost-effective and competitive we become’”

-Parkson Credit CEO
Danny Poh Wan Chung

Parkson Credit is not just relying on its technology as its business foundation but also upholds its philosophy. Every decision, from digital transformation to product diversification is made with customer empowerment in mind.

“For us innovation isn’t about following trends. It’s about creating them,”Poh says.

“We’re not in a race to digitise for the sake of it. We carefully choose the right technology to unlock new opportunities for our customers and business partners.” 

Nonetheless, he noted that financial technology is evolving rapidly and thus staying ahead of the competition requires continuous innovation for the company.

“Our system is built in-house, which gives us the flexibility to adapt quickly,” he explains. “Al can help with automation, fraud detection and customer service enhancements.The more we streamline operations，the more cost-effective and competitive we become.”

WHAT’S NEXT?

While motorcycle financing remains its core business, Parkson Credit has bigger ambitions. Poh hints at future expansion beyond vehicle financing.

“We have a strong foundation now” he says. “We’re looking at other consumer credit segments but we want to do it right”. 

One area of interest is personal loans. With a digital moneylending licence from the Ministry of Housing and Local Government (KPKT) Parkson Credit has  the regulatory approval to expand its financial services.

“The key is timing. When the market is ready we will introduce new products that align closely with our customers’ needs.”

Another potential growth avenue lies in leveraging its extensive customer database. With a million past applicants, Parkson Credit has access to valuable consumer insights.

“We don’t just see ourselves as a financing company. With our digital capabilities, we have the potential to expand into retail and other financial services” 

As Parkson Credit marks its 10th anniversary this year, Poh believes the company’s greatest achievement isn’t just its growth but its ability to set new industry standards.

“Ten years ago, nobody thought a Malaysian start-up could challenge established global players” he says. “Now, we’re not just competing-we’re leading.” 

Indeed, the impact of Parkson Credit’s innovations can be seen across the industry. Today digitalised financing is the norm, dealer networks have been transformed and motorcycle customers enjoy a more seamless, efficient experience.

“Our journey proves that technology and strategy can level the playing field,” he concludes. “We may not be the biggest but we are  the trendsetters.