Loan applications via K-Plus, the mobile banking app by Kasikornbank (KBank), have decreased by approximately 20% following the bank’s decision to slow down digital lending growth last year.
KBank’s Executive Vice-President, Supreecha Limpikanjanakowit, mentioned that the bank scaled back its promotions for consumer loans through K-Plus to maintain asset quality due to high household debt levels and increased credit risks. Consequently, both loan applications and approvals via K-Plus dropped by about 20%.
The majority of loan applicants on K-Plus are from the mass market segment, including salaried workers and freelancers, especially those with payroll accounts and new employees.
While continuing to offer loans to reliable customers with strong repayment capabilities, KBank supports their liquidity needs and access to funding sources.
In light of an uncertain economic recovery and high household debt, Supreecha highlighted that KBank advises K-Plus users to focus on personal financial planning to enhance financial discipline and loan accessibility.
Furthermore, the bank promotes saving, investment, and insurance products among K-Plus users to bolster personal financial planning and boost fee-based income from the digital channel.
KBank’s CEO, Kattiya Indaravijaya, noted the bank’s goal of enhancing credit scoring and risk management systems to enhance the asset quality of its digital loan services. Therefore, KBank chose to moderate the growth of its digital personal loan business to refine its business model and enhance loan product quality.
Despite the slowdown in digital loan growth, the number of K-Plus users has continued to rise. In the first half of the year, the mobile banking app gained approximately 1 million new users compared to the previous year-end.
KBank, ranked as the country’s third-largest lender by total assets, dominates the industry in mobile banking apps with 23 million K-Plus users. The bank attracts new users, especially first-time jobbers and payroll workers, including both local and migrant employees. KBank also holds a notable market share in payroll services for migrants.
While the growth rate of K-Plus users is projected to ease due to a high base effect, transactions through K-Plus are on the rise, comprising roughly 35% of the market share, surpassing KBank’s overall market share of 20%. Additionally, K-Plus services have expanded to regional markets such as Laos, Vietnam, and Indonesia.
In Vietnam, K-Plus users have reached around 2 million. KBank has also collaborated K-Plus with MEB, the digital banking app of its Indonesian partner, Bank Maspion, to enhance digital banking services for customers.
