BAY enlists Lalamove to attract motorists
Krungsri Consumer, an unsecured loan unit under Bank of Ayudhya (BAY), and Krungsri Auto have secured a partnership with on-demand delivery app Lalamove to offer an information-based loan service and financial products for motorists.
The first product likely to be offered is under Krungsri First Choice, a personal loan unit under BAY, with the goal of providing loans to 5,000 Lalamove drivers.
Lalamove has 80,000 total drivers in Thailand, separated into three performance levels, with 5,000 drivers who each earn a monthly salary of over 30,000 baht.
Krungsri First Choice offers a 28% interest rate for the first year, dropping after customers build up a good repayment record.
Krungsri Consumer Group chairman Thakorn Piyapan said personal loans provided to Lalamove drivers will be assessed on information-based lending criteria, with additional financial products to be announced in the future.
Krungsri Consumer will offer personal loan services to a select group of drivers who have good credit scores. Offered services include personal loans, credit cards and instalment loans for tyre replacement and petrol payments for greater convenience.
Krungsri Auto, an automotive lender under BAY, will be cooperating to continuously strengthen the business partner network in the digital realm, Mr Thakorn said.
He said the Lalamove service app adds a new dimension to the financial service sector for the digital economy, in which technology plays an increasingly integral part.
“The initiative is also the start of our ambition to create a strong digital business partner network by bonding with leaders in various business sectors to expand our scope and ability to provide consumers with financial and loan services encompassing all segments,” Mr Thakorn said. “The loans will be small, while loan maturity and payment period are short, but loan contracts will be more frequent.”
Krungsri First Choice has total outstanding loans of about 75 billion baht, while the personal loan portfolio is expected to grow to 13 billion baht by year-end.
BAY is in negotiations with four other service platforms, Mr Thakorn said, and the resulting mutual cooperation will be announced from December into the first quarter of 2019.