Krungsri Consumer reveals 2021 operating results with satisfactory growth Spending via card 285,000 million baht, new loans 76,500 million baht, outstanding loans 139,900 million baht, as a result of expense management. Ready to use modern technology to increase operational efficiency along with maintaining credit quality and helping customers Announcing the strategy for 2022 and stepping into the new financial world Focusing on digital and data in business for the future enhance products and services develop organizational potential Ready to join hands with partners to create growth Aims for spending by card 312,300 million baht by 2022
Ms. Nayanee Puekkham, Chairman of the Board of Directors, Krungsri Consumer, a credit card and personal loan service provider which consists of Krungsri Credit Card, Krungsri First Choice Card, Central The 1 Credit Card and Lotus Credit Card said that Krungsri Consumer’s operating results in 2021 continued to grow satisfactorily. Despite having to face the protracted Covid-19 situation, resulting in slow economic recovery There were 285,000 million baht in spending via card, 76,500 million baht in new loans, 139,900 million baht in outstanding loans as a result of expense management. Ready to use technology to increase operational efficiency Along with taking care of asset quality with strict risk management. and continually helping affected customers Krungsri Consumer’s non-performing loan (NPL) ratio stood at 1.1% for credit cards and 2.8% for personal loans and installment loans. which is lower than the average in the business
The highest spending categories by card are 1. Insurance, 2. Online shopping and e-wallets, 3. Hypermarts and supermarkets, 4. Home furnishings and household appliances, 5. Gas station The top 5 spending categories with the most growth rates are 1. Online Shopping & E-Wallets (+55%), 2. IT & Electronics (+12%), 3. Gas Stations (+ 11%), 4. Insurance (+9%), and 5. Home and household decorations (+8%). The number of online shopping platforms continues to grow exponentially. with an increase of 55% compared to 2020, while spending at department stores remained stable. but interesting is Online spending in department stores grew by 62%, demonstrating a trend of adjusting both consumers and operators. that pay more attention to online channels It has been transformed into an omni-channel sales model, both online and in-store.
For the year 2022, the recovery of the Thai economy has begun to slow down somewhat. from the outbreak of the Omicron virus. including inflation conditions that tend to increase But there are still factors supported by measures to support people’s purchasing power. and stimulate domestic tourism As a result, private consumption has improved. Overview of credit card and loan business this year It is expected that competition will increase, as well as to see cooperation between financial institutions and businesses. To offer more new financial products and entrepreneurs tend to adopt digital and data systems. Come to develop new financial products such as digital credit card products. or requesting a digital loan to be in line with the behavior of consumers in the new era that are more open to technology
Krungsri Consumer, as a leader in credit card and personal loan businesses has prepared to adjust the business strategy To develop the organization’s potential to be ready for the new financial world by laying out 3 main strategies as follows:
1. Using digital and data in business for the future by focusing on building a digital ecosystem through the expansion of the data platform and develop new financial products and services through digital channels including the development of new digital credit cards with a variety of distinctive features Meet different lifestyles which will gradually be launched within this year Including new services such as digital personal loan issuance, where Krungsri Consumer has obtained a business license from the Bank of Thailand. And is expected to start service in the second half of 2022, ready to provide more convenience to customers. by developing new services such as expanding the identity verification service point for applying for a card under Krungsri Consumer Group, developing new features in the UCHOOSE app such as a new card application service via the app, UCASH service, a cash withdrawal service from the card limit via the app. by bank transfer, BNPL – Buy Now Pay Later via app They can request to make in-person installments, as well as apply in-depth analytics to personalization. to offer products and promotions that are more relevant to customers
2. Growth by merging with companies in Krungsri Group and leading business partners including expanding the retail loan business into the ASEAN region especially Krungsri One Retail, which will integrate cooperation between many business groups in Krungsri Group. By focusing on the needs of customers is important. Optimizing the use of data, products and sales channels by taking the customer as the center To enhance products and services to meet customers’ needs more, along with collaborating with leading partners in the business To offer better products, services and promotions to customers. Along with adjusting the business model to seek new sources of income such as offering ‘Call Center as a Service’, ‘Collection as a Service’ to provide services to partners, etc., as well as expanding the microfinance business to ASEAN regions such as Laos Cambodia, the Philippines and Vietnam by merging with Krungsri affiliates in the region
3. Organizational potential development especially the continuous training and development of personnel. to keep pace with the new business world while creating a flexible and efficient work environment. to attract high potential personnel This will be an important driving force in driving business into the financial world of the future.
Ms. Nayanee said that these three strategies This is to enhance the potential of Krungsri Consumer to be in line with the business environment in the new world. including changing consumer demands In order to maintain its leadership in the financial business continually, in 2022, Krungsri Consumer has set a target for card spending of 312.3 billion baht or 10% growth. New loans 84,600 million baht, a growth of 11%, outstanding loans 149,600 million baht. grew by 7% and had 500,000 new card accounts, from regarding 300,000 the previous year. Credit card use grew by 12.3%, while personal loans grew by 8.3%. which will have to wait to see when the installments are due at the end of this year what will be the situation Will there be additional measures?
However, Krungsri Consumer currently maintains its approval criteria at the same level. even starting to see an economic recovery Because we still haven’t reached the original point of the situation. There are also new events, such as the conflict between Russia and Ukraine, for example, while household debt is still high, so caution must be exercised. On the other hand, digital lending should help us reach more customers who were previously unable to access financial institutions. It is expected to be launched in the middle of this year.
