Krungsri eyes full leverage of fintech in digital era

“The outcome of the first protocol is expected to be seen in the next three years, which should be the right time to see [the trend in] technology adoption by consumers. If adoption is in line with the way that we are going, we will start the second protocol,” said Thakorn Piyapan, chairman of Krungsri Consumer and head of digital banking and innovation.
“Technology today is moving fast and it is not easy for banks to keep up with it. Every time the banks do manage to keep pace with the technology, it always moves one step ahead of them. Mobile banking technology is not yet disrupting ATM usage, but if the use of mobile banking increases further to the point that we see it is a trigger point for a second protocol, we will move to the second protocol,” he added.
The first protocol falls under Krungsri’s seven pillars and 11 technologies.
The first of the 11 technologies is venture capital. The bank has set up a venture-capital firm named Krungsri Finovate to invest in financial technology via existing funds both in Thailand and overseas.
Thakorn said Krungsri Finovate had set aside an initial investment fund of US$30 million (Bt1 billion) for the 2017-19 period. “We are assessing three potential venture-capital funds that invest in payment technologies and artificial intelligence [AI], including data analytics,” he added.
The other 10 technologies are smart API (application programming interface); blockchain; a new mobile banking application; a PromptPay mobile app; a digital lending platform; an AI chat board; robo advisers; KYC (know your customer); Krungsri Ignite; and e-wallet and QR payment.
The bank will gradually introduce these technologies, Thakorn said, adding that a new mobile banking application and PromptPay mobile app are among the technologies that will be the first to be made available.
“We will revamp and offer new features for the Krungsri mobile banking application, to which existing customers will be invited to upgrade. Meanwhile, we have to have a PromptPay mobile app to accommodate customers who are not using our mobile banking.”
The bank will introduce a digital lending platform for unsecured loans, enabling customers to “do it yourself” from the stage of loan application, checking their credit score with the National Credit Bureau through to the stage of having the funds transferred by Krungsri if their qualifications are verified by the bank, Thakorn said.
“Our development of the digital lending platform, which is 70 to 80 per cent complete, means customers who use the platform will know whether their loan application has been approved within 15 to 30 minutes,” the digital-banking chief said.
For robo adviser service, he said the bank was currently selecting technology to support the financial advisory service with regards to its relationship managers, before expanding the technology to support Krungsri’s wealthy clients.