KTC unveils its strategic plan for the loan business in the second half of the year. The plan includes joining forces to drive unsecured loan together with secured loan after obtaining a license from the acquisition of Krungthai Business Leasing Co., Ltd. (KTBL) shares to operate a variety of loan businesses. The Firm is going hand in hand with members to overcome challenges in the COVID era, and to meet the needs of Thais of all occupations and business owners in all dimensions. KTC is all set to upgrade its new product, "KTC P BERM Motorcycle title loan with cash card" for the first time in Thailand at full force. The latest service will help Thais move forward with their lives and enjoy flexibility with the ability to use their vehicles normally and feel even more peace of mind financially with a cash card with complete functions: Swipe-Transfer-Withdraw, all in one card, with no fees.
Ms. Phichamon Jitpentham, Senior Vice President - Personal Loan Business, "KTC" or Krungthai Card Public Company Limited, reveals, "The spread of the COVID-19 virus that has lasted almost two years has affected people's lives both positively and negatively. Although consumers still seek credit to enhance their liquidity to spend on living necessities, running a personal loan business in 2021 is not an easy feat. To boot, pushing the port of receivables to grow amidst a crisis while managing the debtor quality at a normal range was extremely challenging. Despite this, KTC's priority is to aim to maintain its debtor portfolio quality and as a result, KTC has adjusted and tightened its credit approval criteria. In the first half of the year, personal loan receivables at the end of June 2021 totalled 29,480 million baht (637,849 million baht in the industry), a decrease of 2.5 percent compared to the same period last year, with a total of 802,971 member accounts. The market share is at 4.6 percent and the NPL equalled 3.0 percent (3.5 percent in the industry). It is expected that by the end of this year, KTC will maintain the port of receivables at a level similar to the previous year."
"Regarding the operations of KTC's loan business in the remaining half of this year, KTC still needs to closely monitor the situation of the COVID-19 epidemic to prepare for any uncertainties that may arise. The unsecured personal loan business plan consists of 4 main goals: 1) Help loan members affected by the COVID-19 pandemic in a variety of appropriate ways with an emphasis on convenient accessibility and expression of intent. Loan members can easily register through the KTC website at www.ktc.co.th; 2) Alleviate members' debt loads with continuous debt clearing campaigns. In this upcoming 12th season, cardmembers who register to join, use their card to withdraw money, and have payment discipline, will be entitled to 100% complete debt clearing and 10% debt clearing throughout the year."
"3) Focus on consistent product development to offer members a comfortable and safe loan usage experience and reduced exposure to cash. This entails developing a number of features, including real-time 24 hours a day online money transfers via the "KTC Mobile" app to 13 banks, requesting an emergency credit limit increase easily via the automatic IVR system, as well as being able to use the cash card in 4 different ways: "Swipe-Transfer-Withdraw-Pay", and 4) Expansion of new credit member base. The goal is to expand the proportion of "KTC PROUD" loan members to include customers who earn higher income and wish to spend a large sum of money. This was achieved through a campaign to lighten the load with a reduced interest rate of only 0.93 percent with up to 36-month installments. Recently, KTC has also upgraded its "KTC P BERM Motorcycle title loan with cash card" product to include Swipe-Transfer-Withdraw functions, making this the first product of its kind in the credit industry in Thailand, to help Thais who do not have access to credit sources gain access to working capital to expand their spending on necessities. This product is suitable for those that own a motorcycle and have a vehicle ownership booklet under the name of the loan applicant. The highlights of this product include "Easy loan and fast access to large sums with a cash card". Members can continue using their motorcycles and enjoy revolving credit lines with the ability to withdraw cash from the credit limit with the cash card for additional emergency use after making payments and having a good repayment history. Members may use the cash card to swipe to make purchases, make real-time money transfers to a bank account, and withdraw cash at ATMs with no fees."
Ms. Rueankeaw Kasemsavatsri, Vice President - 'KTC P BERM' Loan Business, discusses the overall picture of the car and motorcycle loan in the first half of the year, "Car Title loan business at the end of the second quarter had a total of 158,493 million baht in receivables, with non-bank financial institutions holding the main market with approximately 82 percent of total loan. Meanwhile, the car and motorcycle hire purchase business at the end of the second quarter had a total of 1,176,279 million baht in receivables, with commercial banks holding the main market with approximately 70 percent of the total loan balance."
"The economic slowdown from the COVID-19 crisis caused the credit market to become highly volatile. Government policies coupled with changing behaviors and lifestyles challenged us to adapt. In the last half-year, the 'KTC P BERM' loan portfolio may not turn out as expected due to various factors. However, we believe that there is still a lot of demand for credit in the market. Therefore, we must seek and create interesting products and services that meet the demand to present to customers on a wider scale. KTC will focus on lending with caution to allow its ports to grow gradually rather than grow quickly with risks. KTC will still set a goal to grow to 1,000 million baht by the end of this year."
"KTC has adjusted its strategic plan for the secured loan business in the second half of this year to be more prepared to deal with the situation. It is expected that the Company will experience a positive trend in the following 4 areas: 1) Expansion and diversification of the scope of loan product portfolio to cover more customer groups from the acquisition of KTB Leasing (KTBL), which allowed us to offer transferable car registration loan, auto refinance and car registration loan, and used cars auto finance loan, which will be put in motion in the 3rd quarter of this year. 2) Digital contract signing; KTC will continue to implement technology in the loan application process and approval in accordance with the Digital Twin principle. At the end of the past second quarter, the contract for 'KTC P BERM' has been adjusted to a digital format with no paperwork and paper contracts requirements. As a result, this has reduced the application process to about 1.5 hours, thereby offering convenience, safety, and reduced physical contact. 3) Expand the service area to a nationwide scale within this year. Services will be tied to Krung Thai Bank branches in every region. KTC will also join forces with KTBL's network branches to speed up the expansion. Lastly, 4) Make KTC P BERM's core strengths well-known and reach more target groups. The P BERM service is outstanding in 4 areas: high-limit credit line, 2-hour approval time, instant payment, accepts applications with no occupation requirements, and P Berm Delivery approves credit on the spot without holidays, which are unique selling points that make it stand out from other operators."
"'KTC P BERM' reaffirms its intention to support perseverant individuals of all occupations, especially during this economic slowdown. 'KTC P BERM' is favoured by those deeply affected, such as merchants, small business owners, and freelancers. KTC P BERM will focus on easy access to credit with a high-limit credit line, hassle-free document requirements, fewer collateral conditions, and no restrictions on the age of the vehicle. The service also allows loan applications despite outstanding installment balances and the adjustment of product conditions to be more flexible to gain access to a wide range of customers, such as car owners who partook in refinancing and car-owners experiencing restrictions from other financial institutions."
Ms. Phichamon adds on the topic of helping members from COVID-19, "To collectively move through this crisis together, KTC has presented a support approach that is suitable for the diversity of the group of members in accordance with the measures of the Bank of Thailand. As of June 30, 2021, a total of 21,564 accounts have joined KTC's assistance measures with an outstanding debt balance of 1,545 million baht. Additionally, as of August 15, 2021, 13,370 members across all products have requested a two-month moratorium on debt repayments."