KBank introduces the first-ever SME loans approved via mobile phones Up to 1 million Baht available in 1 minute with only 1 tap

Stocks and Financial Services Press Releases Thursday June 21, 2018 14:15
Bangkok--21 Jun--KASIKORNBANK

KASIKORNBANK (KBank) introduces innovative SME financing, based on a smart model created by AI to analyze customers' financial behaviors and requirements, and pioneers mobile SME lending to assist its customers in accessing financial facilities in a timely fashion. With any collateral and document required, customers can obtain loans of up to 1 million Baht in one minute with only one tap. This year, KBank expects to extend 3 billion Baht of SME loans via this platform.

Mr. Surat Leelataviwat, KBank Executive Vice President, revealed that we always emphasize the support of SME customers who are a major contributor to KBank and a key driver for the Thai economy. However, most SME operators have faced difficulty in gaining access to funding sources due to unavailability of financial data for seeking loan approval, lack of collateral and no financial planning, resulting in business interruption and opportunity loss.

To alleviate this funding problem and keep SME business run smoothly for ongoing growth, KBank has developed a new AI-based loan approval model, a smart solution for analyzing customer data including their deposits, credit utilization and use of K PLUS application. The innovation is instrumental in assessing customer's financial demand and offering them loans via mobile phone. The combination of AI and mobile phone technology will enable KBank to introduce loans to the right customer at the right time within appropriate limits that meet their business needs. Aside from providing loans to the "right" customers, the initiative helps them receive financing in the blink of an eye. After being notified of the loan offer via the Life PLUS menu on K PLUS application, borrowers just follow three simple steps, i.e., 1) Choose the loan desired; 2) Get loan approval; and 3) Accept the approved loan by tapping a mobile phone button. Within only one minute, loan will be credited to their account; loan amount is granted up to one million Baht, with no collateral or documentation required.

The introduction of such a SME loan is the first of its kind in Thailand. Normally, SME loan application is time consuming because many documents are required. However, the use of AI and mobile phone technologies in creating a smart model for analyzing data and loan demand will likely benefit SMEs in many ways. Among these include shorter loan application procedures and the fact that our SME customers will be able to get sufficient credit line within a desirable timeline without losing any business opportunity. Also, any SMEs with consistent banking transactions and financial discipline will allow Bank to have adequate information to analyze in order to approve loans to them. This will substantially benefit small businesses in particular because they will have greater access to loans than ever before. In the future, once KBank has more customer data in place, the AI system will be able to improve its capacity in analyzing customer data and customers' needs more precisely, thus given us an opportunity to extend more loans to SMEs and other types of customers.

Mr. Surat added that KBank began extending SME loans via mobile phone around the middle of June this year by notifying our customers via Life PLUS on K PLUS. Such loans have not only attracted substantial interest from SMEs, but also been warmly embraced by our customers, presenting a positive sign on the customer side. Since the Thai economy overall exhibits promising outlook ahead, KBank believes that SMEs will likely need more working capital for investment expansion. Our easy and quick loan approval procedures, therefore, will help attract prospective customers to apply for more loans from us. KBank has set a target to extend 3 billion Baht in SME loans via mobile phone during 2018.

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