Krungsri Consumer prepares a new service

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Ms Nayanee said Krungsri Consumer’s total credit card spending reached 285 billion baht in 2021.

Krungsri Consumer, the unsecured lending unit of Bank of Ayudhya (BAY) which uses the trading name Krungsri, plans to offer a new credit card service to customers to enable them to purchase goods first and pay the loan later.

The new service, called Buy Now Pay Later (BNPL), will be available on Krungsri Consumer’s UChoose mobile app.

Krungsri Consumer’s new service will allow customers to buy goods first and then request a loan disbursement from customers about one to two months later.

The new service will focus on properties with a smaller note size and a longer loan disbursement period, compared to existing loan disbursements via credit cards. However, Krungsri Consumer has not yet finalized the BNPL terms, said Nayanee Peaugkham, President of Krungsri Consumer.

Krungsri Consumer has received a digital personal loan business license from the Bank of Thailand and is set to launch several new digital loan products on the UChoose app in the middle of this year.

Apart from digital personal loan, it also plans to offer digital credit cards.

For 2022, Krungsri Consumer aims to acquire a new customer base of 500,000 accounts covering both credit cards and personal loans, up from over 300,000 accounts last year.

It plans to develop new loans of 84.6 billion baht, up 11% from last year, and increase total outstanding loans to 149.6 billion baht, up 7 % compared to the previous year.

Additionally, Krungsri Consumer expects to increase credit card spending to 312.3 billion baht this year, a 10% growth rate from last year.

Ms Nayanee said spending via the company’s credit cards grew aggressively by 12.3% in the first two months of this year, compared to the same period a year earlier, especially spending in the domestic tourism and airfare categories driven primarily by pent-up demand amid the Covid-19 outbreak and economic recovery.

However, the company will continue to closely monitor the economic situation and the higher uncertainties of external factors, in particular the impact of the Russian-Ukrainian war. Accordingly, it will continue to monitor asset quality this year and offer long-term debt refinancing to vulnerable customers.

Krungsri Consumer’s non-performing loan (NPL) ratio for credit cards was 1.1% in Q4 2021, down from 1.4% in Q1 2020 at the start of the pandemic . Meanwhile, the personal loan NPL rate also fell to 2.8% in the last quarter of last year from 3% in the first quarter of 2020.

In 2021, Krungsri Consumer recorded new loans of 76.5 billion baht and a total loan portfolio of 139.9 billion baht. Total spending through his credit card was 285 billion baht, Ms Nayanee said.

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