Krungsri Auto targets 10% growth in loans
KRUNGSRI Auto, the automotive-finance arm of Bank of Ayudhya, aims for outstanding loans of Bt307 billion this year, a 10-per-cent increase from 2016.
Last year, the company reported 7-per-cent new-lending growth, which it says outperformed the auto finance industry, which grew only 0.4 per cent.
The company says it is continuing to integrate automotive finance with digital customer-engagement strategies, alongside broad digital technologies implemented on internal processes to offer loans for purchases of new and used cars and motorcycles, along with refinance (Car for Cash) products.
Despite a stagnant automotive market, Krungsri Auto reported a strong 2016. It attributes this success to the new-car loan segment, which stems from Krungsri Auto’s commitment to strengthen relationships with its partners, including automotive manufacturers and car dealers, to provide a comprehensive suite of financial solutions for customers.
In addition, the growth of used-vehicle financing products is a result of strong relationships with second-hand-car dealers nationwide, said Pairote Cheunkrut, head of Krungsri Auto Group.
“In terms of the Car for Cash segment, we aim to strengthen the brand through online media platforms to meet customers’ demands and maintain our leading position as the most admired brand in auto refinance,” he said. “For the motorcycle-financing segment, the growth of this product comes from our success in expanding a network of motorcycle dealers nationwide.
“With all these success factors, Krungsri Auto [was able to] achieve loans outstanding of Bt279 billion in 2016, an increase of 10 per cent from 2015.”
This year, Krungsri Auto targets outstanding loans of Bt307 billion, a 10-per-cent increase from 2016. To achieve this, digital technology is being implemented to upgrade the firm’s products and services, as well as its internal processes, so customers can access financial solutions with speed and efficacy and the Krungsri Auto brand can better engage with them through digital platforms, Pairote added.
Krungsri Auto forecasts that the Thai automotive market will experience a turnaround in 2017 driven by continued government investment on mega-projects, an increase in private consumption, and car manufacturers’ plans to launch new models.
