KBank upgrade targets digital lending
Kasikornbank (KBank) has improved the accuracy of its digital lending in an effort to expand new digital loans to 5 billion baht this year.
The bank upgraded its digital lending platform by adding new features and loan campaigns for a few weeks, increasing its customer base. KBank uses artificial intelligence to help assess digital loan approvals.
With such improvements, the bank has increased the response ratio from the previous 2% of total approached customers to 10% at present.
KBank has offered digital loans to 15,000 clients and extended digital loans worth about 130 million baht on an upgraded platform, said president Kattiya Indaravijaya.
Earlier, the bank focused on offering digital loan products mainly for its payroll client base, but has since expanded to the self-employed and freelance segments. The bank also provides loan campaigns in response to demand from sub-segment customers and offers different interest rates depending on customers' risk profile.
"With this strategy, there have been positive signs of the bank's digital loan expansion because we can respond to borrowers' demand," Ms Kattiya said. "We expect to grow this loan product as targeted."
KBank, the country's third-largest lender by total assets and ranked as the banking sector's leader in mobile services, aims to extend new digital loans valued at 5 billion baht this year.
The bank hopes to increase digital loan products to the tune of 30 billion baht over the next three years. For the initial stage, the loan service has reached out to the bank's existing customer base of 14.5 million.
Ms Kattiya said the bank aims to raise the number of users of mobile banking app K-Plus to 11 million by year-end.
For the next phase, the bank will concentrate on increasing transactions and cooperate with business partners to tap new clients, aiming to expand digital financial services in the longer term.
Transactions via mobile banking still show a healthy growth rate of about 80% despite a decline from triple-digit growth, mainly due to high-base effects.
Transactions via brick-and-mortar branches have gradually declined. The bank aims to close 50 traditional network branches and open 50 new branches, with a focus on community malls to cater to consumer lifestyles.
KBank debuted on Tuesday the Katalyst project to elevate the capabilities of startups determined to expand their business in line with KBank's strategies.
The initiative is aimed at business co-creation via knowledge sharing, provision of advice and support by KBank's various departments and partners conducive for business expansion.