GSB targets 1m customers in first year of auto-title loans business
The Government Savings Bank (GSB) has set a target of one million customers and Bt20 billion in loans for the first year of its new auto-title loan business, said bank president Vitai Ratanakorn.
The service will be offered through GSB’s joint investment in Fast Money, the auto-title lending arm of Srisawad Corporation (Sawad).
The boards of both companies have approved the deal.
GSB will jointly invest Bt1.5 billion with Sawad, purchasing Bt1.3 billion of FM’s newly issued ordinary shares and Bt198.9 million of FM’s existing ordinary shares.
Vitai said the auto title loan business is set to launch in the first quarter next year. GSB aims to list Fast Money in the stock exchange in next three years.
He estimates there are around 3 million existing auto title loan borrowers in Thailand and 3 million potential customers which GSB will tap. The bank will capitalise its 1,000 bank branches and Sawad’s 5,000 outlets to serve loan customers.
