TMB rejigs SME loan service
SET-listed TMB Bank, the country’s seventh-largest lender by assets, has restructured its small and medium-sized enterprise (SME) business by focusing only on small companies with annual sales of up to 100 million baht and selfemployed workers.
The restructuring is aimed at better serving demand from these small businesses and informal workers who are rapidly adapting to digital trends.
With the new structure, mid-sized companies with annual sales of 100 million baht to 1 billion baht have been transferred to the corporate banking business.
Focusing on small SMEs, the bank can better provide them full service, said chief SME banking officer Tientip Narach. TMB’s SME business plans to revamp its financial services and products based on the requirements of each client, which it will determine using big data analytics systems, she said.
Under the previous business structure, fewer small SMEs accessed the bank’s services than mid-sized ones.
Ms Tientip has been with TMB for about one month, replacing the former chief of SME business, Trirong Butragaht, who resigned.
The bank’s SME business also plans to pay more attention to digital development in response to the changing requirements of clients. For example, QR code payment has received good response from small business operators.
TMB plans to relaunch TMB Business Touch, a mobile app for SME customers, next month with new features.
The mobile app launched from the beginning of the year, with several thousands of users downloading it. The bank is maintaining its target of increasing app users to 100,000 by the end of the year.
TMB is also keeping its existing SME loan growth target this year at 10% despite flat growth during the first half.
SME loan demand is showing better signs in the second half in line with improving economic momentum.
But 10% growth seems to be a challenging target, given the first-half performance.
“We expect to deliver positive loan growth for the full year, supported by better signs in both loan applications and credit approval,” Ms Tientip said.
The loan approval rate of the SME segment continues to increase to above 70% of total applications from 60-70% earlier.
The bank’s outstanding SME loans are around 100 billion baht at present.
TMB shares closed yesterday on the Stock Exchange of Thailand at 2.34 baht, down two satang, in trade worth 138 million baht.