Krungsri to expand SME portfolio with MUFGs strength, digitalization Targeting 2018 SME loan growth of 8%

Stocks and Financial Services Press Releases Thursday March 8, 2018 13:50
Bangkok--8 Mar--Bank of Ayudhya

Krungsri SME Banking Group announced its business strategy for 2018 with an aim to be a main operating bank for SME customers through synergy with Mitsubishi UFJ Financial Group (MUFG) . MUFG's global networks enable Krungsri to enhance supply chain services, providing total solutions from upstream to downstream and expanding into other industries, and to upgrade the efficiency of trade finance services.

In addition, the development of digital capabilities and innovation has been reinforced to increase the service quality for SME customers. This year, Krungsri targets SME loan growth of 8% .

Mr. Sayam Prasitsirigul , Krungsri Head of SME Banking Group, said, "Despite a more challenging business envornment in the past year, Krungsri SME has managed to grow continuously especially in its loan portfolio. In 2017, SME loans increased by 11.8% , outpacing the industry average. Loans for trade finance increased by 31% and those for supply chain grew substantially at 46%. For 2018, the new growth engine of Krungsri SME will come from maximizing benefits from the strength of Japanese Corporate and Multi-National Corporate Banking (JPC/MNC) and MUFG's extensive networks to build on services and expand the customer base. This is particularly true as the deployment of financial innovations is needed to cope with changing consumer behavior and business shift toward digitalization and a cashless society, which enables us to provide a wider range of services and better serve the Thai SME sector. To emphasize MUFG's network capabilities, Krungsri has launched the SME Export 3+2 campaign for Thai exporters whose trading partners are MUFG's customers and who choose Krungsri as their main bank in receiving money transfer from trading partners, offering credit facilities for trade finance transactions and other benefits, including free inward money transfer and shipping document delivery services".

For digitalization and innovation, Krungsri has supported Thai enterpreneurs with new financial technology to improve the efficiency, enhance flexibility and reduce operating costs; examples include the Blockchain's Interledger technology to provide a real-time international money transfer service, reducing money transfer times to only a few seconds rather than days previously. As part of digitalization, Krungsri will soon provide an electronic notice of drawdown service, which enables our customers to send a drawdown request from their mobile phones and have money immediately transferred to their accounts.

In addition, Krungsri plans to deploy RM 4.0 digital technology to improve customer experience and better understand customer needs, which will efficiently improve customer management and monitor performance anywhere, anytime, Mr. Sayam said.

About Krungsri

Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits with 72 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group and one of the world's largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 700 branches (663 Banking Branches and 37 Auto Business Branches) and over 34,000 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 8.5 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).

Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.

About MUFG (Mitsubishi UFJ Financial Group, Inc.)

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo with approximately 350 years of history, MUFG is a global network with over 2,300 offices in more than 50 countries. The Group has over 150,000 employees, offering services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group's operating companies include Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation (Japan's leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japan's largest securities firms. Through close partnerships among our operating companies, the Group aims to "be the world's most trusted financial group", flexibly responding to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York (NYSE: MTU) stock exchanges.

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