CIMBT eyes so­cial me­dia for risk



Thai Bank (CIMBT) is in talks with po­ten­tial for­eign busi­ness part­ners to help the bank lever­age so­cial me­dia data to de­ter­mine re­tail bor­rower cred­it­wor­thi­ness.

The ten­ta­tive part­ners are ex­perts in the new tech­nol­ogy and so­cial lend­ing, said Adis­orn Serm­chai­wong, se­nior ex­ec­u­tive vice-pres­i­dent at CIMBT. The bank would ini­tially use so­cial net­work anal­y­sis for credit risk mod­el­ling, called “so­cial lend­ing” by CIMBT.

So­cial me­dia gives lenders an in­sight into how loan ap­pli­cants spend and their be­hav­iour and lifestyle, as well as fi­nan­cial based-in­for­ma­tion. Credit checks via so­cial me­dia also open op­por­tu­ni­ties for those with lit­tle or no fi­nan­cial history to ac­cess bank loans.

He said the bank would test out its so­cial lend­ing model in the Bank of Thai­land’s reg­u­la­tory sand­box to as­sure the tech­nol­ogy’s sta­bil­ity and ac­cu­racy af­ter it agrees on a part­ner­ship.

The pe­riod in the reg­u­la­tory sand­box is ex­pected to take six months to a year, said Mr Adis­orn.

For the ini­tial stage, it would of­fer its so­cial lend­ing model as a pi­lot project to se­lect cus­tomers. CIMBT is still con­sid­er­ing which so­cial me­dia — Face­book, In­sta­gram, Twit­ter — it would use for lend­ing anal­y­sis, he said.

“Sta­tus posts on so­cial me­dia, both mes­sages and pictures, demon­strates user char­ac­ter­is­tics. With data an­a­lyt­ics, it could re­flect a con­sumer’s debt pay­ment abil­ity and his or her will­ing­ness to pay,” said Mr Adis­orn.

“For in­stance, a per­son who al­ways trav­els abroad would be clas­si­fied as up­per in­come. A guy who al­ways checks in at his of­fice is seen to be re­spon­si­ble. A per­son who al­ways posts a painful sta­tus on lot­tery day is seen to love risk-tak­ing. Such be­hav­iours could help in analysing the debt-ser­vice ca­pa­bil­ity of loan ap­pli­cants.”

More­over, so­cial lend­ing would fa­cil­i­tate the bank’s dig­i­tal lend­ing ex­pan­sion, he said.

The bank of­fers dig­i­tal lend­ing via its mo­bile bank­ing app, meant to of­fer cus­tomers more con­ve­nience, sim­plic­ity, and speed­ier loan ap­proval. CIMBT plans to use in­for­ma­tion-based lend­ing to­gether with a credit scor­ing sys­tem to an­a­lyse re­tail loans on the mo­bile bank­ing app.

CIMBT shares closed yes­ter­day on the SET at 0.88 baht, down two sa­tang, in trade worth 1.15 million baht.

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