Tisco Financial Group's microfinance arm, Hi-Way Co, aims for aggressive lending growth of 50% this year for auto refinancing brand Somwang Ngern Sang Dai, through the expansion of outlets.
The company aims for a big jump in auto refinancing loans outstanding to 15 billion baht at the end of this year from 10 billion at the end of 2017, said managing director Supachai Boonsiri.
Network expansion of physical outlets, automated machines and the digital platform will enhance lending growth, he said.
The company plans to open 50 more branches nationwide from 200, targeting an increase to 300 next year.
The new outlets will be located in villages across the country, Mr Supachai said.
The plans also entail for 75% of branches to have automatic machines, up from 25%, not only for customers' convenience, but also Tisco Financial Group's customers' monthly loan instalments and bill payments.
With the network expansion plan, the company is studying to be a banking agent under the Bank of Thailand's regulations, Mr Supachai said.
Initially, the company plans to offer after-sale services for Tisco's core business, auto loans.
Such services include renewal for vehicle registration, tax and bill payment, and lending account closure.
Mr Supachai said the company plans to roll out a chatbot and a mobile phone app to provide clients with information by this year, which will be followed by online loan applications.
Given that the majority of the company's customers are low-income earners, Tisco will dedicate time to move them onto the digital platform.
Hi-Way offers motorcycle and auto refinancing loans with a total loan portfolio of 13 billion baht, of which over 10 billion baht has been allocated to auto refinancing loans under the Somwang brand.
The average monthly income of the company's customers is in the range of 10,000-15,000 baht. Most customers are farmers, salarymen and self-employed workers.
"Growing concerns over household debts are not a point of worry, given our good asset quality," Mr Supachai said. "The company's non-performing loans are marginal at a mere 1.9% of total outstanding loans."
Strong risk management for both loan approval and the debt collection process is the key method for keeping a lid on bad loans, he said.
