Kasikornbank (KBank) projects data-driven income will account for half of total income by 2020, while targeting digital loan growth doubling this year.
Through this data-driven push, KBank aims to enhance analytics to better understand both customers and related partners. Understanding customers allows the bank to offer loans based on personalised requirements for both clients and businesses, said president Kattiya Indaravijaya.
"By upgrading to be a data-driven bank, our data income should be at least 50% of total income, up from 5%," she said. "To achieve this ambitious goal, data analytics development will cover technology, human resources, and culture."
KBank, the country's third largest lender, aims to double digital loan income this year from 15 billion baht to 30 billion. K-Plus, KBank's online platform, is the key method for digital loan growth. The banks targets corporate and SME loan growth rate at 3-5% and 2-4%, respectively.
Another KBank president, Patchara Samalapa, said despite high-yield loan expansion this year, the bank has no plan to adjust any interest rate. With data-driven lending, rates charged depend on the risk profile of borrowers while the ceiling rate is 28% per year based on personal loan products.
The bank has no plans to increase or cut other interest rates, including both prime and premium corporate loan rates.
"Although we focus on high-yield loan products, our provisions for loan losses fell this year, with a credit cost setting of 165 basis points, down from 175 last year," Mr Patchara said.
With data-driven organisation and a digital lending strategy, the bank expects to reduce operating costs and improve revenue over the long term. Higher yields from innovative loan products will contribute a better net interest margin (NIM) in the next few years. KBank projects NIM will increase 3.3-3.5% this year from 3.39% last year.
Organisation strategy covers the bank's international business. The segment's income is expected to rise to 8 billion baht in the next three years from 1 billion baht.
The bank has four overseas representative offices exploring technology development opportunities under the bank's joint-venture subsidiary, K Vision. The four representative offices are located in China, Israel, Vietnam, and Indonesia.
The bank's technology subsidiary, Kasikornbank Business Technology Group, has set an investment budget for overall technology development of 5 billion baht this year.
