Ayudhya Capital targets loan growth

Ayudhya Capital targets loan growth

Ayudhya Capital Services Co, a personal loan unit under Bank of Ayudhya (BAY), aims for 11% new lending growth and a 13% increase in new customers this year.

The company, which provides personal loan and credit card services under Krungsri First Choice brand, targets a rise in personal loans outstanding of 8% to 58 billion baht this year and new lending to expand 11% to 90 billion baht, said managing director Nayanee Peaugkham.

Instalment and cash card loans are projected to rise by 10%, while credit card lending is pegged to increase by 15% in 2019, contributing to new loan growth, she said.

Instalment loans make up 70% of the company's total loan portfolio.

The company targets adding 350,000 new customer accounts this year, 13% growth.

Ayudhya Capital has adopted information-based lending to access new customer groups, particularly self-employed workers.

The company has collaborated with Lalamove, an on-demand delivery app, to offer a pilot project for information-based lending to motorists. It has offered 3 million baht in credit to 200 motorists under the scheme.

The company also partnered with Six Network to offer loans to e-novel writers on the Joylada platform, starting from next quarter.

"With information-based lending, we expect to see better asset quality," said Ms Nayanee. "Such loans could attract those who owe to loan sharks because of reasonable pricing, luring them to enter the formal financial system."

Lalamove's motorists earn around 20,000-30,000 baht a month, while popular writers on the Joylada platform have monthly income of 100,000 baht.

The firm expects to maintain non-performing loans at 2.6% by the end of the year amid positive loan growth.

Ms Nayanee said spending for online shopping via First Choice cards also shows a positive sign in tandem with the burgeoning digital trend.

Spending via online shopping averaged around 2,000-3,000 baht per transaction. The company's card spending for the category delivered the highest growth at 52% last year.

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