Krungsri Auto, an automotive lender under Bank of Ayudhya, is confident its digital lending channel will meet this year's target of 1.8 billion baht, boosted by robust growth of auto loans and a new digital auto lending service.
The company set this year's new-loan growth target at 189 billion baht, a 14% gain year-on-year. Of the amount, the digital loan channel is projected to account for 1.8 billion baht.
The 1.8-billion-baht target does not include PromptStart, Krungsri Auto's latest digital lending product.
"Online lending is likely to meet our target, as consumers' lifestyles have changed and auto sales and loans have registered growth beyond our expectations," said Pairote Cheunkrut, head of Krungsri Auto Group.
Auto sales have been growing since 2017, when sales started to pick up. Year-to-date auto sales have nearly breached 1 million units, recording more than 12% year-on-year growth, higher than predicted by the market, Mr Pairote said.
Auto lending is anticipated to continue growing into next year, with growth in the auto loan industry expected at 5-7%, he said.
"The auto lending business will have high competition next year, especially competition on product innovations and technology," Mr Pairote said.
Krungsri Auto launched PromptStart yesterday, promoting it as the first digital auto lending innovation in Thailand. The service lets customers check their credit appraisals on a mobile website through three steps: filling, snapping and sending. Once completed, the loan approval decision will be given in 30 minutes.
Documents required for the snapping process include ID card, a salary slip and an employee badge or bank statement.
Customers will be informed of their borrowing ability based on their monthly salary and personal information completed on the mobile website.
Mr Pairote said customers will receive primary loan credit appraisal, instalment period, down payment, and contact details of their personal information via PromptStart Advisor.
Customers can check credit appraisal for four lending types: new automobile, second-hand automobile, motorcycle and big bike.
This stage does not constitute a loan agreement, Mr Pairote said, as digital ID, smart contract and e-signature have yet to be implemented.
Krungsri Auto aims for 60,000 applicants to have their digital credit appraised in the remaining two months of this year.