Krungthai Card (KTC), a subsidiary of Krungthai Bank (KTB), is set to launch a new core system next year and restructure its IT unit to support sustainable long-term growth.
According to chief executive Pittaya Vorapanyakul, KTC has been using its current core system for around 12 years and improvements are needed to strengthen both operational efficiency and security measures.
DIGITAL TRANSFORMATION
KTC plans to launch its new core system in September, postponed from the original schedule in February, because of ongoing IT unit restructuring. The new system will leverage cloud and artificial intelligence (AI) technologies, she said.
As part of its digital transformation programme, the company will gradually enhance its core system to accommodate a larger data lake, aligning with the growth of its customer base and financial transactions, said Ms Pittaya.
KTC's financial services focus on three core products: credit cards, personal loans and car title loans.
Credit cards represent the company's largest client portfolio, with around 2.2 million cardholders and a total of 2.7 million cards issued, followed by 700,000 personal loan customers.
She said the digital transformation would enhance the company's security systems to protect against financial fraud amid rising global security risks. Data protection remains a key focus for the company.
"Technological and financial risks continue to rise globally. We need to enhance our core system to keep pace with the business landscape, ensuring we can respond effectively and safeguard our customers," said Ms Pittaya.
OPTIMISTIC OUTLOOK
Despite slow economic growth this year, KTC anticipates improved GDP growth in 2025, partially driven by government stimulus measures.
As a consequence, the company set ambitious growth targets for next year.
KTC aims for a 12-15% increase in credit card spending in 2025 and plans to issue 250,000 new credit cards, primarily targeting individuals with monthly incomes exceeding 50,000 baht.
"The country's high household debt poses a significant challenge to business growth," she said.
"However, we continue to offer credit cards to the middle class, meaning those earning at least 15,000 baht per month, in compliance with central bank regulations."
Ms Pittaya said first-time workers and small business owners are other target markets, though the company will selectively offer credit cards to these segments.
She said KTC aims to achieve moderate 3% growth in its loan portfolio next year, adopting a cautious approach amid rising household debt.
The company also wants to increase its new card-based title loans by 3 billion baht next year.
ASSET QUALITY CONTROL
KTC predicts growth for 2024 to be lower than originally anticipated, in line with current economic conditions.
Credit card spending is expected to grow by 10% this year, below the 12-15% target, while personal loan growth is projected at 2%.
"Although our growth may fall short of targets, we are confident about achieving positive results amid loan contractions in the banking sector," Ms Pittaya said.
The company has managed non-performing loans (NPLs) across its business segments, keeping them below industry averages.
For the credit card business, its NPL rate is 1.93%, compared with the industry average of around 3%. Similarly, its NPL rate for personal loans is 2.8%, compared with the industry average of 3.3%.
