Line BK, the social banking platform under Kasikornbank (KBank), is aiming for double-digit loan growth this year despite a sluggish economic environment. The joint venture between KBank and Line Corp plans to add 3-4 billion baht in new loans, which would represent a 13-18% increase over last year’s loan portfolio of 22 billion baht.
The company aims to grow its total loan outstanding by 1 billion baht, reflecting a 4.5% year-on-year increase, according to Tana Pothikamjorn, CEO of Kasikorn Line, which operates Line BK.
KBank’s 2025 financial targets, as presented to the Stock Exchange of Thailand, forecast flat total loan growth due to an anticipated slowdown in GDP growth to 2.4%. However, Line BK is optimistic about its performance, largely due to its use of non-financial alternative data, particularly social media information, for loan approvals. Artificial intelligence (AI) plays a crucial role in this process.
“With our reliance on social media data, we consider Line BK a social banking platform rather than an AI-focused one,” Mr. Tana said. “We believe Line BK uses alternative data more extensively than our competitors.”
In addition to social media data, Line BK evaluates customer behaviors, such as utility bill payments, to assess credit risk, covering both the ability and willingness to repay debt. Traditional data sources, including financial statements and credit records from the National Credit Bureau, are still used where available.
Thanks to enhanced technological capabilities, Line BK was able to keep its non-performing loan ratio at 3% last year, with plans to maintain this level in 2025. The company has also adjusted its credit scoring and customer segmentation models to better align with current economic conditions.
Since its launch in 2020, Line BK has seen strong growth, with over 700,000 active loan accounts and 7.4 million total users. Beyond digital lending, the platform also offers deposit and insurance services.
Mr. Tana anticipates that the company’s growth will lead to a higher income contribution for its major shareholders in 2025.
Meanwhile, KBank, Thailand’s third-largest bank by total assets and a leader in digital banking, aims to increase the user base of its mobile banking app, K-Plus, to 23.9 million by the end of the year, up from 23.1 million. The bank also plans to grow the user base of its K-Biz app for businesses to 2.1 million, a significant increase from its current 1.2 million users.
KBank is focusing on leveraging advanced technology and AI to help its 24 million customers reach their full potential, according to KBank CEO Kattiya Indaravijaya.
