Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Business

Digital lenders target strong growth this year

Digital lending service providers are aiming for strong loan growth and business expansion this year.

Line BK, a social banking platform under Kasikornbank, grew total users for its mobile app to 5.3 million and targets extending new loans by 5 billion baht in 2023.

As of December last year, Line BK booked total loans of 50 billion baht with 600,000 loan accounts, Tana Pothikamjorn, chief executive at Kasikorn Line Co Ltd, said in a statement.

The company's strategy this year is to increase users by 1 million and to further develop its products.

Line BK's financial transaction service will provide more convenience in accessing services, while its credit provision service plans to expand to cover all regions of Thailand, said Mr Tana.

By the third quarter, Line BK plans to launch a life insurance brokerage service.

Line BK is registered as a life insurance broker under the name Kasikorn Line Insurance Broker and obtained permission from the Office of the Insurance Commission.

A system is being developed to allow customers to browse and pay for insurance products directly via Line BK, he said.

Under its financial inclusivity policy, the company focuses on unbanked and underbanked customers, aiming to provide them with convenient access to basic financial services.

"Regarding loan service, we continue to focus on quality customers, while reaching out to more nano-credit customers because it provides an opportunity for low-income earners to access a legal source of loans," Mr Tana said.

Meanwhile, Monix Co Ltd, a digital loan service provider under SCB X, secured fresh funding of US$20 million or around 700 million baht in a pre-initial public offering (IPO) round.

The investment was led by SCB X and new investor Lombard Asia, a Southeast Asia growth-focused private equity manager.

Another shareholder, Abakus Group, did not take part in this fundraising round.

The funding will be used for business expansion. Monix is preparing for an IPO in the near future, aiming to be a leading digital loan provider in the Thai market, chief operating officer Thiranun Arunwattanakul said in a statement.

Monix was established in 2020 as a joint venture between SCB X and Chinese fintech unicorn Abakus, with a shareholding of 60% and 40%, respectively.

After this new fund mobilisation, the company's aggregated funds increased to $40 million, or around 1.4 billion baht.

As of 2022, Monix recorded $458 million in loan disbursements via its mobile app Finnix. There are around 650,000 platform users, the majority of them considered underbanked.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.