Krungsri First Choice Reveals the business plan for the second half of the year, emphasizing 3 key strategies, namely, going digital, working with partners to expand the business and helping customers affected by COVID-19 Hopes to be the leader in personal loan and installment loan business Expect the market to start recovering in the 4th quarter, preparing to pack a promotion in response to the digital lifestyle. Highlight product strengths in terms of benefits in installments and service channels through digital platforms that meet the needs of the new generation Set a total spending target of 75 billion baht, a 4% increase over the previous year by the end of 2021.
Ms. Phathathai Kulchan, President of Ayudhya Capital Services Company Limited, a personal loan and credit card service provider under the Krungsri First Choice brand, revealed that the personal loan market overview since the beginning of last year There is a downward trend From the severe impact of Covid-19, Bank of Thailand information point out that The unsecured personal loan market in the first quarter of 2021 declined -2.7% yoy. due to the sluggish economy Making consumers more cautious about spending and applying for credit is a challenge for entrepreneurs.
In addition, today’s consumers have begun to change their behavior. There is a growing demand for digital and online services. especially the new generation which is an important customer group of Krungsri First Choice With the proportion of customers aged 23-40 years up to almost 70%, businesses have to adjust their operating strategies accordingly. Krungsri First Choice has adjusted its business plan. to address these challenges, focusing on 3 main strategies: Going digital, working with partners to expand the business. and help affected customers
The main strategies for Krungsri First Choice’s business operations are: 1. Go digital. Krungsri First Choice focuses on developing digital channels in response to changing lifestyles of customers, such as the U Card service, applying for credit cards and credit cards through the UChoose app. Has clearly increased since the start of the lockdown, U Cash service transfer credit card limit into savings account or PromptPay to use as cash. Krungsri First Choice’s U Cash cash withdrawals grew 25% after its launch in May last year.
“Krungsri First Choice It continues to launch promotions that meet the lifestyle of customers using online services, such as online shopping promotions, installment promotions for office equipment and furniture for working at home, promotions on online food ordering, etc.
2. Cooperate with business partners Krungsri First Choice places importance on collaborating with partners to expand their business by offering products, services and promotions that are worthwhile to customers. including leading alliances such as Central Group and Home Product Center Public Company Limited or HomePro, which entrusts the issuance of co-branded credit cards with Krungsri First Choice, including leading brand alliances and shops More than 25,000 merchants who work with the company offer various promotions such as discounts, cash back, including installment payment services with various payment plans, which are the highlight of Krungsri First Choice, whether it is a ‘0% service You can order everything’ that can change the spending amount via Krungsri First Choice Visa credit card to 0% installment for 3 months or installment plan with special interest rate up to 24 months, etc. very popular Because it helps to lighten the burden of customers to manage expenses more easily. suitable for the current economic situation
3. Helping customers affected by COVID-19 Krungsri First Choice puts customers first. Therefore, various assistance measures have been issued to alleviate the suffering of affected Krungsri First Choice card members. Since the first wave of outbreaks until now Krungsri First Choice has assisted more than 900,000 accounts, representing approximately 35 billion baht in outstanding debt.
while the overview of Krungsri First Choice business In the first half of 2021, Krungsri First Choice credit card spending amounted to 13.1 billion baht, growing 5%. The top 5 spending categories were: 1. Insurance 2. Online shopping 3. . Decorate the house 4. Oil 5. Supermarket while Krungsri First Choice installment loans In the first half of the year, it reached 8,000 million baht, growing 12% compared to the same period last year. by product categories that customers prefer to pay by installments Sorted by growth rate: 1. installment payment via online shopping platform (+80%), 2. installment for gold jewelry (+30%), 3. installment for mobile phone, computer and equipment (+30%), 4. installment Insurance (+10%) and 5. Installment on home decoration products (+6%). In the second half of the year even faced with various challenges But the company expects Overall market conditions are likely to gradually recover and recover in the fourth quarter.
Krungsri First Choice expects with three main strategies that are adapted to the business environment and customer needs Including the strengths of Krungsri First Choice products in terms of installment plans that help customers manage expenses more easily and service channels through various digital platforms that help facilitate and respond to the changing lifestyles of customers It should help the business grow continuously by setting a total spending target of 75 billion baht, a 4% increase over the previous year, divided into 45 billion baht in spending via credit cards and 30 billion baht in new loans. end of 2021
