Kasikornbank's SME loans continue to grow, with a loan portfolio of 679 billion baht in the first half of 2017, reflecting a 3% increase   It is expected to achieve an annual growth target of 4-6%. Key industries include construction, tourism, logistics, and the emerging e-commerce sector. SMEs are facing challenges and the bank is preparing to support them in four areas: finance, SME networking, digital banking, and knowledge. The bank is confident in maintaining its leadership position with a 28% market share and the largest network in Thailand.

         Mr. Surath Leelathaveewat, Deputy Managing Director of Kasikornbank revealed that the performance of the SME business segment in the first half of 2017 showed a loan outstanding of 679 billion baht, growing 3% from the end of 2016, with total revenue of 21.5 billion baht. SMEs are currently facing challenges due to changes in the economic landscape and business models, with new competitors entering the market equipped with technology and capital. Therefore, adaptation is necessary to remain competitive. Notable industries in the first half included construction and building materials, tourism and health, logistics, and e-commerce, driven by government investment promotion and businesses that align with changing consumer lifestyles.

          In the second half of 2017, Kasikornbank plans to support customers in four areas: financial support. The bank will continue to focus on serving customers throughout the entire business value chain, particularly in three main sectors: consumption and services, heavy industry and exports, and infrastructure/energy and transportation. This aims to provide SMEs within the business chain with opportunities to access loans and facilitate financial management for both receivables and payables. In the first half of 2017, the bank's outstanding loans in the value chain amounted to 61.3 billion baht from over 1,500 large and medium-sized business clients. Additionally, the bank supports SMEs in accessing loans under the SME Guarantee Program, where the bank covers the guarantee fee of 1.75% for the first four years. Within just one week of launching the program, the bank received interest from clients seeking loans totaling 1 billion baht.

 

         On SME networking, the bank has always prioritized connecting SME business networks. There are over 13,000 members in the K SME Care group who exchange knowledge, build relationships, and engage in trade across regions, with a total transaction value exceeding 1.5 billion baht. The bank collaborates with over 200 partners from both the public and private sectors, as well as local networks nationwide, to support and promote business expansion, create market opportunities, and enhance the capabilities of SMEs.

         On digital banking, the bank is developing financial innovations to support SME operations, including Food Solution, a restaurant management system that integrates payment and accounting systems, K PLUS SME, a mobile banking service for SMEs, and K CONNECT-LG, an online guarantee letter service covering all aspects related to LG. These services will help SMEs manage their businesses more efficiently in the Thailand 4.0 era, and in the second half of the year, the bank plans to develop new financial tools tailored to various businesses.

         And on knowledge, the bank continuously develops and adapts its support for SME entrepreneurs, including organizing seminars to learn about new markets and business development in line with the 4.0 era, providing one-on-one business consulting, and offering knowledge through digital media to meet changing lifestyles.

Mr. Surath further stated that in the second half of 2017, the Thai economy is showing signs of recovery, with promising sectors including export businesses that are expanding in line with the recovering global economy and trade, which will support the demand for Thai products, construction businesses benefiting from government spending aimed at accelerating disbursement before the fiscal year ends in September, and tourism which is improving with a growing number of tourists from nearly all nationalities. The bank aims to maintain its position as the number one SME loan provider with a 28% market share and the largest SME business network in Thailand.

 

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