KTC embarks on a new journey, creates a new s-curve with new high profits in 2022, announces MAAI By KTC app, and joins forces with business alliance moving forward to secured lending business.

KTC is all geared up with goals to push its port to over a hundred billion baht and achieve new high profits post the COVID-19 crisis. The Company embarks on a new journey after confirming two new s-curve business models to drive the future: 1. “MAAI By KTC” a brand new full-service loyalty platform for business partners in the form of a mobile application, and 2. “KTC P BERM” boosts its secured loans target to 11,500 million baht by the end of 2022. KTC joins forces with “Krungthai Bank” and KTB Leasing networks nationwide to advance into the secured loans business in full force, expand the credit cardmember and personal loan membership base, create marketing privileges, and launch new products in collaboration with a variety of business alliances. KTC’s vision is to achieve the reaping of benefits between members-alliances-KTC, establish a merchant network to reach more premium and lifestyle target groups covering all cardmember needs, and drive the business towards sustainability and corporate responsibility.

Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, reveals, “After the COVID-19 situation has unravelled in a better direction along with the reopening of the country from November 2021 onwards, the economy and consumer spending demonstrated better growth respectively. This is a good indicator of the consumer credit market and poses an opportunity to push the KTC business to grow. Achieving a new record of over 6,000 million baht in profit and over one hundred billion baht for the port of receivables remains within the realms of possibility. For this new journey, we have dedicated our time to building two fresh business models that we’ll implement to send happiness as a gift to members to uplift their mood after the COVID-19 crisis. KTC will also advance its credit card and personal loan businesses to expand its new member base and upkeep the quality of the port of receivables, as well as select valuable privileges to meet all the needs of over 3.3 million members.”

“The first of the two business models that will be the vehicles that drive the KTC business to create a new s-curve and generate sustainable revenue growth is the ‘MAAI By KTC’ platform. The platform is an extension of KTC's strengths, namely the execution of its reward point system and expertise in marketing and managing KTC FOREVER points that meet and cover every lifestyle.”

‘MAAI By KTC’ is, therefore, a new state-of-the-art that provides services to business partners that desire the use of a comprehensive loyalty platform. The platform will offer 3 solutions: 1. Membership Management; 2. Point System Management and 3. e-Coupon Management. Moreover, the MAAI Platform also features the MAAI Wallet Application, a one-stop source that accumulates points from various affiliate alliances all in one place for ease of use and maximum benefit. There are many redemption options, including e-Coupons or products at general partner stores covering all transaction categories such as merchants, movie theaters, restaurants, and delivery services. The official launch is in the first quarter of 2022. In January 2022, it will be available to KTC employees to test at an early stage with 16 merchant alliances and will continue to expand extensively beyond that. The origin of the word MAAI (pronounced as “my”) comes from the word MAK MAAI meaning numerous benefits from many partner stores and the convenience that abounds. The name is also synonymous with the word Mine with the intention to denote benefits that belong not only to but also for the user. The app will be available for download on the Apple Store, Play Store, and Huawei Store.”

“The second business model is 'KTC P BERM' secured loans. Starting from today, consumers will get to know and become more familiar with the P BERM business. KTC will continuously expand its member base to drive portfolio growth by leaps and bounds and achieve a loan target of 11,500 million baht in 2022. KTC has set its eyes on proactively reaching target groups in each area through the P BERM Delivery service. This will be achieved by using KTC's sales team across the country to provide loan services directly to the customer’s house or at a location convenient for the customer in a timely manner. KTC P BERM is connected to the Krungthai Bank network with more than 900 branches nationwide and 11 KTB Leasing (KTBL) branches, which is the main strategy. KTC P BERM’s core communication will be through online channels mainly targeting its receptive customers and creating a variety of products that meet the needs of the market, whether it is the 'P BERM' cash card, the first for Vehicle Title loans in the form of a cash card that allows customers to instantly Swipe-Transfer-Withdraw-Pay in installments all-in-one. This new direction covers the hire purchase business under the license of KTBL, of which KTC holds a 75.05 percent stake. Moreover, KTC will develop work processes based on the Digital Twin principles and continuously apply technology with the loan registration and approval processes to make the service more convenient, fast, and safe. On this note, KTC aims to fill gaps in the market by differentiating its strengths from other operators with a large credit limit of 1 million baht and a 2 hour approval time with immediate access to cash. This service is accessible to people of all occupations with easy document requirements with zero hassle, to reinforce the intention of conducting business that opens opportunities and options for people who do not give up to make a living and have easy access to ‘KTC P BERM’ loans.’”

“KTC's credit card and personal loan business in 2022 will focus on the growth of the quality port of receivables, expand new target audience, and maintain the current member base by creating great experiences through marketing promotion activities that satisfy consumers. The credit card business strategy will center around expanding the card base with major partners by means of new product launches and co-branded credit card relaunches with the right benefits to establish connections between the members and the card in the long term. Customers will enjoy maximum benefits from the synergies of KTC and upcoming alliances. KTC is renowned for its wide selection of promotions from popular merchants favored amongst cardmembers. In terms of card transaction promotion strategies, the Company will continue to promote KTC FOREVER points and monthly installments as driving forces for marketing activities. In 2022, KTC will use the strength of its partner network to expand to more premium and lifestyle merchants to meet the needs of the existing top-level members and attract new target groups. To add, KTC will develop various services so that cardmembers can enjoy happiness from using the KTC Mobile app or KTC Phone, including travel services with ‘KTC World Travel Service’, and shopping on the ‘KTC UShop’ e-marketplace. It is expected that the credit card spending in 2022 will grow by 10 percent from 2021 or about 220,000 million baht.”

“Meanwhile, the personal loans business strategy will focus on expanding new member base in potential groups by offering the ‘KTC PROUD’ cash card to customers who have regular income and have a higher income base. KTC is rolling out a campaign to lighten cardmembers’ loads, reduce interest to only 0.93 percent per month, and increase the number of installments up to as high as 60. In addition, in 2022, Thai people will enjoy next-level convenience with the option to self-apply for loans online through an electronic application via a mobile app with the digital identity verification system feature (Electronic Know Your Customer or E-KYC), corresponding to the needs of today's society that require services to be convenient, fast, time-saving, and travel-free. Regarding the current personal loan member base of over 700,000 accounts, KTC is striving for long-term commitment through ongoing campaigns to ease the burden of members. This includes the Debt-Clearing campaign that has increased rewards to 600 to give customers the opportunity to win 100 percent and 10 percent debt clearance throughout the year, as well as develop online money transfers via PromptPay accounts for added convenience. Additionally, cardmembers enjoy transferring money through the KTC Mobile app to 13 banks in real time, 24 hours a day. Besides, KTC is launching special privilege campaigns with leading merchants for customers to get value for money when using the cash card to swipe to purchase products. Cardmembers also enjoy the option to pay in 0 percent installments at participating merchants, thereby reinforcing the worthiness of using the cash card credit lines with 4 functions

‘Swipe-Transfer-Withdraw-Pay in installments.’ It is estimated that the debtor balance in 2022 will grow 7 percent from the year 2021.”

“In terms of member base expansion strategies, the distribution channel this year has to work hard and proactively to win customers of every product into the port. Using Krungthai Bank as a communication channel, KTC will play to the strengths of each product as a selling point combined with the strong points of the distribution channel. It is expected that the demand for personal loans this year will be high as the Thai economy has just begun to recover, and traders or entrepreneurs still seek working capital to maintain operation or expand their business. However, screening the credit risk to gain mutual benefit from all parties remains a challenge amidst fragile economic conditions. By 2022, the goal is to land a minimum of 250,000 new credit card members and a minimum of 100,000 new KTC PROUD members.”

“Efficient financial management is another key to success. KTC will manage financial costs at an appropriate level under acceptable risk as priority. KTC will increase the proportion of short-term loans; it is expected that by the end of 2022, the ratio of short-term to long-term borrowing (original term) will be at 20:80 and the financial cost will be close to what it was in 2021 at 2.6 percent per year. The Company will raise long-term loans in the amount of not more than 12,000 million baht to support debentures due in 2022 of 9,500 million baht and support the growth of KTC's loan portfolio. Despite this, the economic situation is still an important factor affecting the direction of interest rates. Whether it is a new virus strain mutation, the announcement of the QE limit reduction, the Federal Reserve interest rate hike forecast, and the economy’s ability to recover as a result of COVID-19 impact.”

“Lastly, KTC also emphasises on the integration of sustainability or ESG in economic, social, and environmental dimensions to responsible business practices under the concept of ‘Sustainable Development by Spirit’. This is to be in harmony with the needs of stakeholders and support the Sustainable Development Goals of the United Nations. As part of the 5-year sustainability strategy, KTC will utilise digital technology and innovation to generate key results. We will develop products and services that create better experiences for customers and stakeholders with a secure operating system, and create opportunities for people in society to thoroughly access financial services. We will also take into account the reduction of the natural resource consumption and hence reduce the environmental impact in accountable ways. KTC has been included in THSI (Thailand Sustainability Investment) list for the third year, has been on the ESG 100 list since 2016. In 2021, KTC received a rating of AA in the MSCI ESG Rating assessment and was selected as a constituent company in the ‘FTSE4Good Index series’, the Global Sustainability Index.”