Tisco’s Hi-Way ups re­fi­nanc­ing out­lets


Tisco Fi­nan­cial Group’s mi­cro­fi­nance arm, Hi-Way Co, aims for ag­gres­sive lend­ing growth of 50% this year for auto re­fi­nanc­ing brand Somwang Ngern Sang Dai, through the ex­pan­sion of out­lets.

The com­pany aims for a big jump in auto re­fi­nanc­ing loans out­stand­ing to 15 bil­lion baht at the end of this year from 10 bil­lion at the end of 2017, said man­ag­ing di­rec­tor Su­pachai Boon­siri.

Net­work ex­pan­sion of phys­i­cal out­lets, au­to­mated ma­chines and the dig­i­tal plat­form will en­hance lend­ing growth, he said.

The com­pany plans to open 50 more branches na­tion­wide from 200, tar­get­ing an in­crease to 300 next year.

The new out­lets will be lo­cated in vil­lages across the coun­try, Mr Su­pachai said.

The plans also en­tail for 75% of branches to have au­to­matic ma­chines, up from 25%, not only for cus­tomers’ con­ve­nience, but also Tisco Fi­nan­cial Group’s cus­tomers’ monthly loan in­stal­ments and bill pay­ments.

With the net­work ex­pan­sion plan, the com­pany is study­ing to be a bank­ing agent un­der the Bank of Thai­land’s reg­u­la­tions, Mr Su­pachai said.

Ini­tially, the com­pany plans to of­fer af­ter-sale ser­vices for Tisco’s core busi­ness, auto loans.

Such ser­vices in­clude re­newal for ve­hi­cle reg­is­tra­tion, tax and bill pay­ment, and lend­ing ac­count clo­sure.

Mr Su­pachai said the com­pany plans to roll out a chat­bot and a mo­bile phone app to pro­vide clients with in­for­ma­tion by this year, which will be fol­lowed by on­line loan ap­pli­ca­tions.

Given that the ma­jor­ity of the com­pany’s cus­tomers are low-in­come earn­ers, Tisco will ded­i­cate time to move them onto the dig­i­tal plat­form.

Hi-Way of­fers mo­tor­cy­cle and auto re­fi­nanc­ing loans with a to­tal loan port­fo­lio of 13 bil­lion baht, of which over 10 bil­lion baht has been al­lo­cated to auto re­fi­nanc­ing loans un­der the Somwang brand.

The av­er­age monthly in­come of the com­pany’s cus­tomers is in the range of 10,000-15,000 baht. Most cus­tomers are farm­ers, salary­men and self­em­ployed work­ers.

“Grow­ing con­cerns over house­hold debts are not a point of worry, given our good as­set qual­ity,” Mr Su­pachai said. “The com­pany’s non-per­form­ing loans are mar­ginal at a mere 1.9% of to­tal out­stand­ing loans.”

Strong risk man­age­ment for both loan ap­proval and the debt col­lec­tion process is the key method for keep­ing a lid on bad loans, he said.

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