TMBThanachart Bank (ttb) is developing a digital lending platform to provide better access to its loans and improve the bank's asset quality.
The bank added new digital lending features on its mobile banking app, ttb touch, that expedite the approval process for retail loan products.
With the new features, loan applicants can initially check their debt repayment ability by filling out their personal information on the app.
Given the update, ttb touch can evaluate the borrower's debt repayment capability based on his or her information.
The app can also connect with the National Credit Bureau to let loan applicants check their credit records.
As a result, applicants can know the result of their loan request immediately, said ttb president Thakorn Piyapan.
"If an application is declined, the customer can adjust criteria such as down payment, loan instalment or loan period so he or she can better service the debt. Moreover, the bank can control loan quality," he said.
Before digital banking, banks usually would take some time to analyse documents before making deciding on a loan application.
Mr Thakorn said the bank plans to implement the improved digital loan service in the second quarter of 2024, beginning with an auto loan service and then expanding to other retail loan products in the next phase.
The bank plans to build up its digital ecosystem through ttb touch with related parties, both in the public and business sectors, he said.
The digital auto loan service will be available for both internal combustion engine (ICE) vehicles and electric vehicles (EVs) based on generic criteria, such as down payment, credit line, interest rate and loan maturity, said Mr Thakorn.
Even though EVs have higher risks compared with regular cars in the initial stages, particularly rapid depreciation of second-hand EVs, the risk is expected to decline in the long term as the market transitions from ICE vehicles to EVs, he said.
Ttb ranks second in the industry for auto loans.
"We expect the number of EV loans to grow gradually over the next year or two, in line with changing consumer behaviour and lifestyles, as well as the bank's digital banking development," Mr Thakorn said.
Total auto loan applicants average around 10,000 per month as demand for EV loans heats up, he said.
Mr Thakorn said the digital platform development would improve the bank's business efficiency and growth in the long term, while continuing to reduce its traditional banking services and brick-and-mortar branches.
There are around 500,000 users on ttb touch, representing 50% of the bank's total retail customer base, he said.
