Bangkok Bank (BBL) plans to launch a software system that makes it easier for small business operators to put their business and financial plans on the digital platform, a move that will also allow them better access to the bank's loans.
The software system will formulate financial data, which is crucial for loan analysis, so small and medium-sized enterprises (SMEs) will be able to simplify their business and financial plans. This in turn will open the way for them to access the bank's loans, said Virasak Suthanthavibul, senior executive vice-president.
With the advent of digitisation, banks including BBL have paid more attention to online market place, which would allow them to have access to SMEs and support them. The Bank of Thailand, however, does not allow banks to the sole operator of a market place, saying that such business is not part of their core operations.
But banks can do so if they join forces with other organisations. BBL has cooperated with the Commerce Ministry to set up Thaitrade.com, the online market place, to support e-commerce business for the bank's SME clients.
Most of online vendors typically do not need bank loans as they have no physical shops or inventory, Mr Virasak said. But the online channel, which can facilitate sales growth and supply chain, can create loan demand for the manufacturing sector.
"Digitisation would disrupt some business areas and at the same time create new business opportunities. With the digital trend, the bank would focus on the 'new S-curve' industries, in line with the government's economic roadmap under the Thailand 4.0 model," he said.
Conventional industries, however, remain the focus of the bank, which would also support them to go digital in order to increase business potential, productivity, cut operating costs and manage risks.
Mr Virasak said BBL has not finalised its SME business plan and loan growth target for next year but the improving economic outlook would help drive SME loan growth in 2018.
The bank expects to achieve its 2017 SME loan growth target of 3-5%.
