KLeasing adheres to Data Analytics strategy In an effort to hit 45 billion Baht for 2H18

Stocks and Financial Services Press Releases Monday June 18, 2018 13:49
Bangkok--18 Jun--KASIKORNBANK

KLeasing is prepared for the uptrend of auto market in the second half of 2018, and aims to extend 45 billion Baht of financing. The company is on track to undertake comprehensive development of its products, including digital channels, and to employ Data Analytics for gaining in-depth understanding of customers' demand, which will assist in devising proactive product offerings without awaiting customers' request. This strategy is expected to enhance a greater number of loan approvals and the financing under K-Auto Finance (Refinance) will likely experience significant growth this year.

Mr. Sasawat Virapriya, Executive Chairman of KASIKORN LEASING Co., Ltd., (KLeasing), said the auto sales in Thailand have expanded continually since early 2018. Over the first four months, total sales amounted to 316,299 units, or more than 15.5 percent of over-year growth. This uptrend will likely continue throughout the year and total auto sales may reach around 484,000 units during the second half of 2018, equal to growth of more than 5 percent YoY. Therefore, the entire year will record the sales of 950,000 units, rising 9 percent over the previous year. Such performance is mainly supported by the recovering economy, with respect to expanding public and private investments, tourism and e-commerce, which benefit transport and service businesses. In addition, car makers have continually launched new series, in line with the auto financing business of commercial banks that will likely grow 10.5 percent in 2018, with improvements to be seen in the NPL (loans overdue above three months) trend.

KLeasing's core business directions for this year will focus on application of Data Analytics technology for data analyses, enhanced efficiency of risk management and loan origination to shed light on demand and in-depth understanding of customers, as part of the company's efforts to offer products to timely respond to customer needs. The company first adopted this technology to the offering of special privileges to participants in Motor Show 2018 and received an overwhelming response. In 2H18, KLeasing will emphasize the adoption of the Data Analytics technology while also working with its allied auto dealers in the launch of products to be in alignment with demand of both retail and corporate clients in terms of speed and convenience. The company sets the target of 500 million Baht in loan extended to customers through the use of Data Analytics technology while also projecting to cap its NPL at 1.73 percent, especially through increase in risk management efficiency in order to broaden a quality loan portfolio.

For new products, KLeasing is pressing ahead with plans to expand our customer base in a leapfrog pace. This is to widen our share of the market focusing on new products that meet the market needs along with introducing sales promotions for electric vehicles (EV), including hybrid or plug-in electric automobiles. The popularity of EVs is growing as seen from the introduction of many new models by leading car makers and the opening of a number of EV charging stations. Currently, EV charging station opening is being supported by the public and private sectors as their long-term development projects. With the strategy to use Data Analytics to provide precise analysis of customer information, KLeasing is confident that our new products and improved promotional campaigns will meet our customers' needs at the right time, thus allowing KLeasing to extend loans via car dealer partners more easily.

In the meantime, KLeasing will focus on penetrating small and medium sized motorcycle loan and car registration loan markets where growth potential is high. KLeasing will incorporate the Data Analytics strategy for every product to reach the target customer groups and present them with the right products. KLeasing aims to achieve 45.585 billion Baht of loans in the second half of this year, consisting of 23.424 billion Baht of new car financing and car refinance, and 22.161 billion Baht of floorplan financing.

Looking ahead, Mr. Sasawat said that the auto financing business has potential to expand tremendously especially via online channels which make it more convenient for customers to get access to information and easier for them to make decisions. In the second half of 2018, KLeasing will fully gear toward this channel by using "K-Auto Finance (Refinance)" as the leading campaign because the product, similar to personal loan, is designed to boost cash flow for retail customers. Therefore, KLeasing is confident that the latest digital platform in collaboration with channels provided by KBank will enable the customers to expedite every auto financing transaction with only one click and provide efficient services in response to rapid increases in the customer base and their transactions. With precise customer behavior analyses enabled by the Data Analytics technology, KLeasing will be able to offer more responsive services, while catering to the current behavior of customers who prefer studying loan information online before making decisions to apply for services and products.


Latest Press Release

Siam Commercial Bank and SCB Abacus announces success of AI-powered lending platform for SMEs on Lazada to capture booming e-commerce trend

The new solution marks Thailand's first e-marketplace end-to-end digital lending platform and reinforces SCB's industry leadership Siam Commercial Bank (SCB) announces the success of "Clickcash" (Mae Manee Sri Online), Thailand's first end-to-end...

THE FINLAB LAUNCHES THAILANDS FIRST BUSINESS ACCELERATOR FOR SMEs

The FinLab announced the launch of its Smart Business Transformation Programme to help Thailand-based small- and medium-sized enterprises (SMEs) transform their businesses through digital solutions. The programme is supported by United Overseas Bank...

Photo Release: KBank teams up with PTTOR to offer first KBank Service at Cafe Amazon, PTT Service Station (Ekamai-Ramintra)

Ms. Jiraporn Khaosawas (1st from left), Chief Executive Officer and Managing Director of PTT Oil and Retail Business PCL. (PTTOR), and Mr. Patchara Samalapa, KBank President, recently introduced "KBank Service" or deposit service at Cafe Amazon, PTT...

SHREIT announces distribution for unitholders of 0.2561 baht per unit All three existing hotels continue to generate excellent revenues in past three months Results from first 10 months of 2018 yield total distribution of 0.5997 baht per unit

Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) on 19 November 2018 announced distribution payment for the past four months (1 August - 31 October 2018) to unitholders at the rate of 0.2561 baht per unit. And...

KTC joins forces with Bangkok Airways Airline in launching seven brand-new KTC Bangkok Airways credit cards beyond the power of boutique, all-in-one cards.

KTC jointly with Bangkok Airways, celebrate their 13th partnership anniversary and Bangkok Airways' 50th anniversary, transforming seven KTC – Bangkok Airways credit cards to cover all card alliance networks including MasterCard, VISA and JCB,...

Related Topics