Krungsri Auto targets 15% increase in online lending

Krungsri Auto, a leading automotive lender under Bank of Ayudhya, aims for 7% loan portfolio growth and a 15% boost in online lending this year.

The company wants its auto loan portfolio to rise to 345 billion baht and its digital loans to hit 1.5 billion this year, said Pairote Cheunkrut, the head of Krungsri Auto Group.

Recoveries in both the country’s economy and the auto industry are expected to lend support to the loan growth targets, which are based on assumptions of 4% economic growth, a 3% increase in domestic new-car sales to 902,000 units, 4% growth in used-car sales to more than 1.45 million, and a 3% rise in motorcycle sales to above 1.86 million.

Mr Pairote also forecasts the overall industry’s auto loan extensions to reach 580 billion baht this year.

If Krungsri Auto’s loan targets are achieved, its market share will remain at 25% by the end of this year, Mr Pairote said.

The company plans to keep a lid on non-performing loans at no more than 2% of total loans by year-end, he said. Krungsri Auto’s bad loans are currently 1.6% of loans outstanding.

The lender will continue to apply digital technology to expand its business and build customer engagement.

Partnership strategies are a key factor to develop technology, especially on the e-marketplace platform.

After joining hands with Kaidee.com last year, Krungsri Auto has partnered with Line Thailand and created an official account to strengthen engagement with customers.

“Some 68% of Thai social media users use the messaging app Line,” Mr Pairote said. “This will help strengthen engagement with our existing customers and expand into new client bases.”

Krungsri Auto also aims for double-digit growth in new loans through online channels this year. It delivered a 98% surge in 2017, underpinned by partnership strategies and tech developments that improved the efficiency of loan approvals.