Krungsri (Bank of Ayudhya PCL and its business units) and Grab Thailand revealed the long-term collaboration on an exclusive basis leveraging the synergy of their strengths and capabilities to deliver superior customer experience in the next new normal. Adopting the customer base and business expansion strategy, both parties - equipped with customer insights as well as technology innovation and expertise to serve the needs of targeted customers in new business segments - jointly introduce two nano-finance products for Grab driver-partners and Grab merchant-partners.
The move fortifies both parties' strategic alliance after Mitsubishi UFJ Financial Group (MUFG) announced earlier this year that it would invest in Grab through MUFG Bank, MUFG Innovation Partners and Krungsri Finnovate, to co-develop innovative financial products and services to better cater to the financial needs of Grab's driver-partners, merchant-partners and users.
Mr. Pairote Cheunkrut, Krungsri Chief Strategy Officer, said "Krungsri and Grab have entered into an exclusive long-term business agreement, jointly establishing three-year visions and strategies in expanding our customer base and delivering impressive customer experience. Through big data customer analytics and AI-powered data analysis, appropriate financial services will be delivered to customers via platforms they are using in daily activities, such as KMA, UChoose, GO by Krungsri Auto Application and Grab etc. In addition, Krungsri and Grab will continue to enhance competitive advantages to cover new market segments, while understanding, accessing, and adding value for customers to make them part of the ecosystem built by Krungsri and Grab."
As for the business expansion strategy, Krungsri and Grab are planning to extend their networks throughout the country. Krungsri's acquisition strategy will be implemented through the Bank's many campaigns and enhancing financial access for customers.
"Krungsri believes that the collaborations will help us achieve our targets in business expansion to cover diverse markets nationwide through the synergy of network strength and distinctive expertise of both parties. This will surely help drive the Thai economy, in particular the segment of small businesses which still need support for their access to financial products and services," Mr. Pairote said.
Mr. Worachat Luxkanalode, Country Head of Grab Financial Group (Thailand), said "Grab Financial Group, Thailand's leading full-service FinTech provider, commits to its mission to help uplift the quality of life of Thais through financial inclusion. Equipped with expertise in behavioral analytics and new credit analysis models, we efficiently respond to the needs of the underserved who find it difficult to access traditional financial services. Grab recognizes that Krungsri stands ready to support the growth of businesses in Grab's ecosystem by sharing financial knowledge and insights, as well as developing products and services for underserved communities.
Under such cooperation, Krungsri and Grab have teamed up for designing and developing nano-finance products scheduled to launch in the fourth quarter of 2020. These products include: 1) Loan for Grab driver-partners; and 2) Loan for Grab merchant-partners, developed to provide financial support and easier access to financing sources for Grab driver-partners and Grab merchant-partners. The maximum credit limit is set at 100,000 baht with the maximum interest rate of 33%. The installment period is up to six months. Borrowers can choose their preferred credit limits and installment plans on the loan application date. Repayment can be easily made as the system will automatically deduct the installment amount as set. Given expertise of Krungsri and Grab, these loan products offer borrowers convenience, ease and speed, along with a simple loan application process. Filling information through the application for Grab driver-partners and merchant-partners, partners can complete their loan application without additional documents or a guarantor required. In addition, Grab's driver-partners will get cash transferred to their e-wallet in the Grab App immediately after approval, while Grab merchant-partners will swiftly get cash credited to their bank account on the next business day.