Wednesday, September 23, 2020

Krungsri outlines key strategies to be more competitive

Dec 15. 2019
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By Thanachart Chuengyaempin

Krungsri Auto, an automotive financial company under Bank of Ayudhya, has launched three key strategies -- connected data, collaborative service offerings, and co-creating platform, to compete with others in the auto finance market, Pairote Cheunkrut, Krungsri Auto Group’s head, revealed on Friday (December 13).

“To stay ahead in the age of digital disruption, these three central strategies will help enhance thr capacity of our services to meet the lifestyle needs of automobile users,” he added.

On connected data, he said that Krungsri Auto has continually collected and analysed data usage of its servicing platforms to improve its service.

“Recently, we simplified the  user journey of ‘Krungsri Auto PromptStart’ programme, allowing our customers to check their credit appraisal on the mobile web without documents,” he explained. 

“Within three weeks after this improvement, we found the  conversion rate increased five times”.

Meanwhile, to create collaborative service offerings for serving different lifestyle of customers, in 2019 Krungsri Auto Broker partnered with 12 leading insurance companies to offer digital motor insurance service with the budget-to-plan feature.

“This service was very successful in acknowledgement," he added. “Over 1.36 million visitors visited our website within five months.”

In addition, Pairote said that Krungsri Auto planned to create its co-creating platform to approach customers effectively, providing numerous services about auto finance, vehicle-related, and lifestyle in a single channel.

“This idea was developed as Krungsri Auto Ecosystem, the new business model that will be announced officially in the next year,” he explained.

He said that sale of new cars presently was 1.012 million, decreasing by three per cent from 2018. Factors for drop in sales were declining consumption of private sector, and pressure of domestic debt. Besides, the auto finance market shrunk by four per cent this year, or around Bt601 billlion.

“Next year, Krungsri Auto aims to grow sustainably, and our expected growth number is in estimation,” he added.

This year, Krungsri Auto’s proportion of new volume included 38 per cent of new car loans, 22 per cent of used car loans, 17 per cent of refinance loans, 10 per cent of motorcycle loans, and 13 per cent of dealer loans. The organisation planned to extend the proportion of refinance from 17 to 20 per cent in 2020.

Furthermore, Krungsri Auto expects its new volume to be at Bt211 billion this year, while outstanding loans will be at Bt411 billion. “Besides, we think about a providing loan service in the future when cars are not personal assets anymore but a sharing asset of everyone,” he added.

 

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