Easy loans for everyone
Ms. Kattiya says that through its technology leadership, the bank aims to transform the banking industry in Thailand in a way that helps more people enter the banking system and benefit from banking products and services.
The big banks have continued to exploit the underbanked, with the aim of promoting financial inclusion and further expanding their customer base.
Banks have leveraged partnerships and digital technology to provide financial services to underbanked groups.
Last month, Kasikornbank (KBank) announced a 100 billion baht strategic program aimed at boosting access to banking services among the unbanked and underbanked population as well as very small businesses.
The program includes accelerated investments in technology, technology-related acquisitions, business partnerships, organizational development, as well as the adoption of other technology-enabled methods to improve access to banking services with a wider audience.
KBank Managing Director Kattiya Indaravijaya said that through its technology leadership, the bank aims to transform the banking industry in Thailand in a way that helps more people enter the banking system and benefit from banking products and services.
Ms Kattiya added that KBank is piloting specialized buy-now-pay-later loans for those who are self-employed or do not have documents proving their income by assessing their creditworthiness on alternative data.
In their companies’ latest collaboration, the executives of Krungsri and Grab Thailand are jointly launching “Grab First Personal Loan”, a new financial product for Grab users.
Over the past few months, KBank has approved an average of 1,600 loan applications per day using this method, and the loan amount is usually around 1,500 baht, with some cases reaching up to 20,000 baht.
KBank has partnered with LINE to offer social media banking services in Thailand to make it easier for customers to access the banking system.
Loan seekers, who do not have a bank account, can access the LINE BK app and apply for a loan and get a response within 24 hours. If they already have an account with KBank, they can complete the application and receive a decision in less than five minutes.
By the end of this year, with the LINE BK app alone, the bank hopes to attract an additional 200,000 people into the banking system by granting them their first loan. Through this channel, it also plans to provide loans totaling 20 billion baht to more than 600,000 individuals and small businesses, Ms. Kattiya said.
KBank is also working with a major retail group to give inland family store operators easier access to collateral-free loans, as well as providing loans to store customers.
“By assessing the creditworthiness of a store and its customers in a non-traditional way, and greatly simplifying the processes, by 2022 we aim to penetrate deep into the hinterland through the partner’s thousands of stores. This will bring us one step closer to helping residents of small communities around Thailand have access to banking services,” Ms. Kattiya said.
As part of the strategy, KBank and Carabao Group, the maker of energy drink Carabao Dang, have teamed up to invest up to 15 billion baht to expand the latter’s Tookdee convenience stores.
The two partners will also establish a joint venture called Kbao Co to provide comprehensive lending services, as well as financial facilities, to Carabao Group companies and Group customers.
KBank also launched the K PAY LATER loan this month which allows customers to spend on their daily lives under the “buy-now-pay-later” concept, targeting the self-employed, small traders and employees who do not have no proof of income.
The application can be done through its K PLUS mobile application. Customers can use it to spend at over 100,000 participating stores nationwide. The maximum loan limit is 20,000 baht.
READY FOR GRAB USERS
As part of their latest collaboration, Bank of Ayudhya (Krungsri) and Grab Thailand have launched “Grab First Personal Loan”, a new financial product for Grab users.
All Grab users who are invited to apply for the loan through the Grab app can submit the application through Krungsri Consumer’s UCHOOSE app. The loan is available with a maximum credit line of 100,000 baht and a maximum disbursement period of 12 months.
Krungsri and Grab have exclusively formed a long-term strategic alliance since 2020 and have continuously synergized in the development of financial products and services as well as the launch of a series of promotional campaigns to meet the financial needs of all related parties in the Grab ecosystem.
Phonganant Thanattrai, head of Krungsri Retail and Consumer Banking, said loan products under the partnership have generated more than 3 billion baht in total loans, providing access to financial products to more than 100,000 merchants and partner drivers.
The success has led to expanded collaboration in designing new products that better meet the financial needs of Grab users, he said.
SCB Abacus’ MoneyThunder app aims to serve those who have difficulty accessing loans from financial institutions.
This time, the partnership leverages the digital financial product expertise of Krungsri Consumer, a leader in credit cards and personal loans, to develop the first Grab personal loan to cater specifically to Grab users.
According to Nayanee Peaugkham, President of Krungsri Consumer, the first Grab First personal loan is exceptional because it is easy to apply through digital channels.
In addition, customers can check their loan balance, payment amount and due date for free via the UCHOOSE app 24 hours a day.
“This collaboration provides a significant opportunity for Krungsri Consumer to expand financial services and loan extension to cover a wider range of customer segments and further grow our business. We have targeted 300 million baht in loans within a year of launching the service,” Ms. Nayanee added.
Worachat Luxkanalode, Executive Director of Grab Thailand and Country Head of Grab Financial Group (Thailand), said that promoting financial inclusion among Thai people is one of the main objectives of Grab Financial Group.
He added that over the past three years, Grab has partnered with Krungsri to offer a full suite of products to meet the needs of low-income people who are underbanked, such as personal loan and cash loan. instant for GrabFood merchant partners and a personal loan. for partner drivers.
Vee Charununsiri, Head of Lending Department at Grab Financial Group Thailand, added that this new product relies on new technology, alternative data derived from users’ transactions on the platform and machine learning algorithms used to financial behavior analysis, to establish a more accurate loan underwriting and approval process and better respond to user preferences.
Carabao Group’s Tookdee Convenience Stores.
Meanwhile, SCB Abacus, SCB X’s digital lending platform, secured Series B funding worth US$20 million (about 700 million baht) from local and international shareholders.
The proceeds will be used for business expansion and digital lending growth on the SCB Abacus platform under the MoneyThunder marketing name.
Sutapa Amornvivat, Managing Director of SCB Abacus, said the success of the finance is because the company has a clear mission to help people with low credit or those who have difficulty getting loans to access loans through its MoneyThunder app.
The company has deployed an artificial intelligence and machine learning system to improve app lending, she added.
There were over 8 million downloads of MoneyThunder, of which over 50% of users had already been rejected by banks when applying for a loan, and around 40% were loan sharks.
About 15% of users are entrepreneurs between the ages of 20 and 25.
SCB Abacus aims to serve 10% of Thai borrowers who find it difficult to access a loan, or about 2.5 million people, by 2024.