TMBThanachart Bank (ttb) plans to create a new business unit, ttb Consumer, to serve unsecured lending products, with the aim of growing this business through a digital platform.
Resulting from the merger between TMB Bank and Thanachart Bank, ttb will transfer the credit card and personal loan activities to this new entity.
The digital platform is a key strategy to grow the unsecured loan products, said managing director Piti Tanthakasem.
Previously, the bank operated credit card and personal loan business based on traditional banking by opening for loan applications in physical branches and marketing sales mainly.
However, the application of unsecured loans has seen positive growth thanks to the bank’s mobile banking application, ttb touch, while loan applications at bank branches have declined along with the digital age.
“Over 50% of credit card and personal loan applicants apply for loan products through the mobile banking app. Credit card spending and new personal loan applications surged in the fourth quarter of the year latest through the digital platform service,” he said.
With the digital platform, ttb aims to expand its customer base and market share of credit card and personal loan products this year.
At the same time, the bank has updated its mobile banking application and is expected to officially launch the new version of ttb touch in April.
Mr Piti said the bank aims to make ttb touch one of the top three mobile banking apps and increase the number of users from the current level of four million.
The new version of ttb touch with more features, more convenience and better response to customer requirements will help expand the number of users and increase digital banking transactions.
In addition, ttb will leverage the digital platform to help individual customers manage their debts through debt consolidation under the Bank of Thailand measures, and this will help solve household debt in the country.
As part of the debt consolidation program, ttb will ease the interest payment burden for customers in a context of rising interest rate trends.
Auto loans, the bank’s main business segment with about 1.1 million customers, will be a flagship product of the debt consolidation program, he said.
Given the global economic recovery, ttb expects global interest rates to start rising later this year.
With this scenario, the bank is also offering new fixed deposit products to manage financing costs in line with the fixed interest rate of auto loan products.
Mr Piti said the bank also plans to raise fresh funds worth around 1 billion baht through a warrant offering to existing shareholders.
The bank wants to test the market with the new mobilization of financing, and it is an option on the diversification of the sources of financing.