BAAC taps tech to boost farmers’ incomes

The bank also plans to upgrade 900 of what it calls community financial institutions by teaming up with grass-roots financial organisations. The moves fall under what the bank dubs its “BAAC 4.0” platform, mirroring the government’s “Thailand 4.0” policy for technological development.
 BAAC president Apirom Sukprasert said the bank, now entering its sixth decade, would strive to blur the boundaries between the types of financial services offered to urban and rural customers. To do this, it would rely on innovation and the upgrade to BAAC 4.0, he said, as the lender became “a rural universal bank”.
With the heightened focus on customers, the bank came up with the label Small for low-income farmers with informal debts arising from daily necessities. They will be helped by the provision of credit to ease these informal debts and emergency credit to head off such debts.
Apirom said the bank would work with community financial networks and provincial subcommittees on debt management to improve farmers’ financial knowledge while promoting savings discipline.
A second category for customers has been labelled Smart. For this group, the bank will work with the leaders of local groups, community organisations and Pracha Rath networks to support the next generation of farmers who will be taking over from their parents. Opportunities for tourism development and a shift to organic farming will also be explored along with ways to reduce production costs.
The bank’s third category is called SMAEs, for small and medium-sized agricultural operators. The bank will seek to strengthen these customers’ operations with the help of innovation and technology. These customers will also be helped to take on a leadership role in building up communities from the grass roots, the bank says.
Under the bank’s plan to upgrade the targeted 900 financial institutions, customers can enjoy reduced costs at these community financial service centres. Under a collaboration with village groups and community financial institutions, the bank will provide the key supports in technology and systems development.
In fiscal 2016, to the end of March, BAAC helped farmers and low-income earners in agricultural and non-agricultural sectors through 38 projects with the financial assistance of Bt341.15 billion. More than 32,000 small and medium-sized agricultural enterprises received help.
The bank’s total assets rose 7.31 per cent to Bt1.62 trillion for the year. Its credit edged up 6.03 per cent to Bt1.28 trillion, while deposits totalled Bt1.41 trillion. 
Non-performing loans (NPLs) stood at 4.03 per cent of total loans. The bank’s net profit was Bt9.5 billion.
BAAC aims to grow its credit by 7 per cent in fiscal 2017. The bank’s deposits are expected to rise 4 per cent. NPLs are targeted to be under 4 per cent of total loans.