GSB switches tack to data analytics for digital loans

Government Savings Bank (GSB) plans to deploy an alternative data analytics system by the middle of next year to enhance its digital lending analysis.

Bank president Vitai Ratanakorn said digital lending through the bank’s MyMo mobile application will use this tool for verification of borrowers’ income.

Mr Vitai said the bank achieved 50% of its digital lending development target and the adoption of the alternative data analytics system should help smooth the development.

GSB’s digital lending app requires borrowers to submit income documents online.

In the future, the app will also ask for alternative data, such as utility bills or online shopping bills to consider when approving digital loans, he said.

GSB has provided loans via MyMo since early this year.

It has provided loans to 1.3 million retail borrowers who have been affected by the pandemic, said Mr Vitai.

Since last year, GSB has launched 36 financial measures under the government’s policy to mitigate the impact of the pandemic on the public.

These measures have provided total loans of more than 200 billion baht and benefited around 11 million people, he said.

One measure is the offer of loans of up to 10,000 baht per person. The loan has an instalment period of three years with a monthly interest rate of 0.35%, or around 4% per year.

The package also offers a grace period on principal and interest payment for the first six months.

The bank has provided these loans to more than 800,000 borrowers.

GSB expects growth of 2-3% for both lending and deposits this year, with higher rates for both segments next year, said Mr Vitai.