SCB launches AI banking service
Siam Commercial Bank (SCB) has introduced banking services equipped with artificial intelligence (AI), aimed at expanding digital loans while improving control over non-performing loans.
Last month, SCB became the first bank in Thailand to offer 100% AI-based digital loan services through its mobile banking app, SCB Easy.
These services include loans for small businesses, mortgages and automobiles available to existing SCB depositors, said chief executive Kris Chantanotoke.
SCB has 17.8 million customers, with 84% using the SCB Easy app.
With its upgraded AI technology, SCB aims to better manage asset quality in its digital loan business.
The interest rates for these loans are determined by the applicant’s risk profile, he said.
In addition to digital loan services, SCB is using AI for portfolio and wealth management.
Mr Kris said the AI-based services are expected to help increase digital income to 25% of total revenue by 2025.
In the first quarter, digital revenue comprised 9.9%, while the target by year-end is 13-15%, he said.
Despite the advancements in digital banking, he said SCB remains committed to its employees and plans to use AI technology for staff development, aligning with its strategy of being a digital bank with a human touch.
The bank employs around 19,000 staff.
SCB, Thailand’s fourth-largest lender by total assets, plans to continue growing its traditional banking operations across three key segments: retail, small and medium-sized enterprises (SMEs) and corporate banking.
In 2024, SCB anticipates modest loan growth of 1-2%, aligning with the country’s economic growth.
This growth will primarily be derived from corporate loans, given the strong position of local corporations, said Mr Kris.
He said the bank will be selective in granting SME loans because of the fragile conditions of this customer segment. SCB is also prepared to offer debt restructuring measures to assist SMEs.
In retail banking, Mr Kris said SCB will focus on mortgage loans for properties with a minimum price of 5 million baht per unit.
“Asset quality among vulnerable clients has remained stable since the pandemic, despite an uneven economic recovery. However, low to middle-income clients, earning up to 20,000 baht and 60,000 baht per month, respectively, continue to face economic challenges,” he said.
Mr Kris said SCB is continuing to improve its business operations. In the first quarter this year, the bank recorded an unconsolidated net profit of 13.2 billion baht, up 13.7% year-on-year.
The bank reduced its cost-to-income ratio to 37.7%, the lowest in the industry, while achieving the highest return on equity (ROE) at 12.7%. SCB is the first Thai bank to resume reporting a double-digit ROE, said Mr Kris.
Source – Bangkok News
