Kasikornbank has announced its SME business plan for 2018, utilizing Data Analytics and Value Chain for lending, targeting a growth of 4-6%. The strategy positions the bank as "the bank for SMEs" with four key strategies to win customers through comprehensive financial services, digital banking offerings for SMEs, the use of Data Analytics for credit assessment, and providing services beyond finance to support SMEs in growing their businesses robustly. The bank noted that non-performing loans (NPLs) are trending downwards as the economy shows signs of recovery.

          Mr. Surath Leelathaveewat, Deputy Managing Director of Kasikornbank revealed that the Thai economy in 2018 is expected to expand similarly to the previous year, with GDP growth projected at around 4%. The construction sector is anticipated to benefit from government investment projects totaling approximately 1 trillion baht, while exports are expected to grow by 4.5% due to the recovering global economy. Meanwhile, the tourism sector is forecasted to grow by 6.5-7.5% as Thailand remains a popular destination for international tourists, particularly from China.

          However, with consumer behavior increasingly shifting towards online channels, social media and technology will play a more significant role in business operations. SMEs must adapt in three areas: enhancing sales channels to be more integrated (Omni-Channel), leveraging technology to improve business efficiency, and developing post-sales strategies that leave a lasting impression on customers.

          Given the economic context and the direction of business adaptation among client entrepreneurs in 2018, Kasikornbank has established the strategy of "the bank for SME businesses" to reinforce its leadership in this market continuously. The strategy comprises four main areas:

  1. Comprehensive Financial Services (Financial Solution) including:

1.1 Credit assessment through business chain management (K-Value Chain Solution) In 2017, the bank had over 2,200 clients in large and medium-sized business networks, particularly in three main sectors: consumer goods, hardware and spare parts, and oil and infrastructure. By providing comprehensive financial care and valuable business insights from upstream to downstream, the bank approved new loans totaling 18 billion baht in 2017. In 2018, the bank will continue its strategy of lending through business chain management to support partners in the business networks of entrepreneurs to access funding effectively.

1.2 Comprehensive franchise business services (K-Franchise Solution) Kasikornbank was the first bank to offer franchise loans to support business startups, allowing clients without prior experience to enter the franchise business, which has become a popular choice for starting a business. The bank will host the KBank Franchise Expo 2018 on February 9-10 at BCC Hall, Central Plaza Ladprao, to support those interested in franchising with 50 well-known brands and assist SMEs looking to expand their businesses through franchising for significant growth.

  1. Digital Banking Innovations The bank is committed to developing digital banking innovations that support SME transactions in preparation for a cashless society. Services include K PLUS SHOP, an application for merchants that accepts payments via QR Code without needing to disclose account numbers or provide change. Merchants can process payments seamlessly, with 710,000 stores currently using the service, processing 1.3 million transactions worth 829 million baht, demonstrating a positive response from Thais towards a cashless society. Additionally, KBank Mini EDC is a payment device that enhances the sales potential of small retailers with an all-in-one payment function that supports debit and credit cards, QR codes from mobile banking across all banks in the country, as well as Alipay and WeChat Pay.
  2. Data Analytics for Credit Assessment (Data Analytic Lending) In 2017, the bank utilized technology to analyze and process financial transactions of entrepreneurs, both incoming and outgoing, allowing for a better understanding of credit needs and more tailored loan offerings. This resulted in over 22 billion baht in new loan approvals. In 2018, the bank will expand its use of data analytics technology in credit assessment to offer loans that meet customer needs without waiting for customers to apply.
  3. Services Beyond Finance (Beyond Banking)

4.1 Organizing networking events and knowledge promotion for entrepreneurs through the K SME Care project, which has already run 23 sessions with over 13,600 network members, resulting in business matching worth over 1.5 billion baht per year. In 2018, the bank will launch the 24th session under the concept of Digital Revolution, focusing on enabling entrepreneurs to utilize Digital Marketing Tools and enhance sales channels with new technology.

4.2 Supporting entrepreneurs in utilizing innovations for business under the concept of "Enhancing Innovation for Entrepreneurs" to address the needs of three business groups: food production, retail, and hardware businesses producing automotive and electronic components, providing in-depth knowledge for business development, one-on-one consulting for research and innovation development, and funding support for research and innovation.

4.3 Seeking fintech and digital technology to enhance services beyond financial offerings, providing tools to increase operational efficiency for entrepreneurs, from presenting alongside bank products to connecting fintech systems with bank systems. In 2017, Kasikornbank introduced Beyond Banking services, including Food Solution, a comprehensive restaurant management package that seamlessly integrates front-of-house services and back-office accounting management. This year, the bank will expand such services to retail and real estate sectors to enhance business efficiency for entrepreneurs comprehensively.

          Mr. Surath concluded by stating that Kasikornbank has continuously targeted the SME customer segment and has a large and diverse customer database, enabling the bank to analyze and understand customer needs accurately. Therefore, he is confident that the strategies in place will meet the financial and innovation needs of entrepreneurs to enhance business management efficiency and competitiveness.

          In 2017, Kasikornbank's SME loan portfolio reached 698 billion baht, growing 6% from 2016. For 2018, the bank aims to increase SME loans by 4-6% and maintain the number one market share at 28.5%. The NPLs among SME clients have begun to decline since late last year due to signs of economic recovery both domestically and internationally, and large-scale government investment projects are expected to positively impact certain SME groups.

Thank you for the information from www.kasikornbank.com