Krungthai Card in bid to push personal loans via DIY channel
Krungthai Card is offering quick approvals and a low interest rate to do-it-yourself (DIY) and walk-in customers in a bid to boost its personal loan business.
"We will increasingly build up the DIY channel to target customers who are white-collar workers and first jobbers with a monthly income of Bt15,000, together with promoting walk-ins at KTC branches," Sudaporn Janwatanagool, executive vice president for personal loans, said yesterday.
KTC offers two personal loan products – KTC Cash and KTC Proud.
It aims for 140,000 new KTC Proud customers per year, but the challenge is how to woo them amid the economic uncertainty and high level of household debt.
Direct sales and Krungthai Bank have been the two key marketing channels for KTC, but the bank considers that in the digital age, it should offer a DIY channel to new-generation customers.
The company has offered DIY service for KTC Proud, which has both a revolving credit line and offers instalment loan.
Customers who apply successfully for KTC Proud via the online channel will be charged interest at 9 per cent per annum for the first two months, while those applying via normal channels will be charged 15 per cent per annum.
Walk-in customers will receive quick cash within 30 minutes and be charged zero interest for the first two months.
KTC introduced the quick cash product for walk-in customers in July and it received good feedback.
"We believe customers have a need for cash. The quick cash process with a low interest rate will help facilitate their decision to use personal loans," she said.
The company wants to have more merchants who could recommend KTC Proud financing for their customers.
It will highlight long-term zero-interest instalment plans for some products to encourage card usage. About 60-70 per cent of the 700,000 KTC Proud accounts are active.
The company would also seek new customers through new segments such as insurance agens, beauty agents.
The company is optimistic about achieving personal loan growth of 15 per cent next year, even though this year it was 13 per cent, below the target of 15 per cent.
Assuming the economy recovers next year from the government’s stimulus packages and infrastructure investment, demand for personal loans should pick up.
However, the severe drought and rumours of terrorism would weigh on the spending of consumers and the personal loan market, she added.
