Siam Commercial Bank (SCB), the country's second-largest lender by assets, aims to lend 10 billion baht in retail loans through its mobile banking app this year after it rolls out the service for smartphones.
Of the 10 billion baht, 7 billion is projected to go to personal loans and 3 billion to retail loan products, said Apiphan Charoenanusorn, senior executive vice-president and head of operations.
SCB Easy Digital Lending, which is part of the SCB Easy app, covers personal loans, credit cards, auto loans, mortgages, and small and medium-sized enterprise loans, she said.
"With big data analytics, artificial intelligence [AI] and machine learning technology, we expect to better expand loans and control non-performing loans [NPLs]. The digital lending platform should give customers greater access to loan products with more convenience, speed and security," Mrs Apiphan said.
In the initial stages, the bank will focus on the existing mobile banking customer base through SCB Easy. Additional customer documents and personal information will not be required, as the bank's database will already have the necessary information. SCB can then approve the loan within three minutes, compared with the 30 minutes required for the traditional process, and customers can apply for loans around the clock.
Despite the shorter time for the loan approval, the existing loan criteria, credit scoring system, and National Credit Bureau records are still needed.
"Pricing of retail loan products via the digital lending channel depends on each customer's risk profile, so good customers would receive a lower interest rate. The credit line is also based on each customer's risk profile, based on Bank of Thailand's regulations," she said.
To promote SCB Easy Digital Lending, borrowers who get personal loans via the digital platform by this month will get a special rate of 15% per year throughout the loan term, well below a range of 21.5% to 28% charged for those apply through traditional channels.
The bank targets 70 billion baht in new personal loans from both online and offline channels, rising 75% from 40 billion baht last year. With digital platform developments, the bank expects to extend its personal loans aggressively this year.
New personal loans for the overall banking industry tallied 358 billion baht last year. The industry's NPLs stood at 3% compared with SCB's 2%. The bank's personal loans outstanding amounted to 35 billion baht at the end of last year and it expects them to increase to 55 billion this year.
SCB also aims to maintain NPLs for personal loans at no more than 3% by the end of the year, she said.
Separately, the bank's chief transformation officer Yens Lottner said the bank collects customer information mainly from demography, income, banking transactions, and money drawing, while big data analytics, AI, and machine learning technology support the bank's crucial analysis both on loan approvals and risk control.
SCB shares closed yesterday on the Stock Exchange of Thailand at 162 baht, up 3.50 baht, in trade worth 3.5 billion baht.