Bangkok--25 Apr--Krungthai Card
KTC indicates positive growth in the personal loan business – an area of business in which they maintain above industry average growth. The firm seeks to increase market share with strategies for the second quarter and the rest of 2017. Four strategies for intensive competition: 1) expansion of member base to cover new professional groups and use of vigilance in the expansion of business; 2) development of supporting systems for the expansion effort; 3) marketing activities for mass and segmented targets; 4) maintain and strengthen long-term relationship with members. KTC expects to achieve the target growth of 15%.
Miss Sudaporn Janwatanagool, Executive Vice President - Personal Loans Business "KTC" or Krungthai Card Public Company Limited, revealed that, "We see intensifying competition in the personal business from existing operators and emerging ones. They represent alternatives for consumers who look to choose for products and services which are consistent with their needs."
KTC's personal loan business has been growing in all aspects. The firm's personal loan ending net receivables for 6.5% of the industry, whereas the figure was 5.7% last year. As of December 31st, 2016, KTC has a personal loan portfolio of 818,068 accounts, ending net receivables of 20,154 Million Baht, while NPL for the personal loan business drops from 1% to 0.9% which is the lowest in the industry. Presently, KTC has a market share of 6.8% in terms of membership.
"For the second quarter and the rest of 2017, KTC will use different proactive strategies in the personal loan business in order to achieve a sustainable competition. Members will see clearly defined marketing activities at all levels. There are four main strategies to achieve this. Firstly, we will expand our member base to cover the different professional groups and use vigilance in the expansion of our business through offline channels and online ones which are the Click KTC application, the web site at www.ktc.co.th and the TapKTC mobile application. Secondly, we will develop new supporting systems for the expansion effort to facilitate new member application and to inform the applicants of the outcome within 30 minutes through partner establishments of KTC and all branches of "KTC Touch" customer service center. Thirdly, we will conduct marketing mass and segmented marketing activities. The mass campaigns will focus on lightening the financial burden of the members. The segmented campaigns will focus on offering relevant privileges to each group of members. Fourthly, we will maintain and strengthen long-term relationship (Loyalty Program) through occupational and income-building workshops under the Quality of Life concept, and provide financial planning and savings knowledge to the members."
"KTC operates in the customer centric manner. We have been competing with ourselves all along. We ask on a daily basis about what the members want and work closely with the Management Information System or MIS to analyze the identity, the behaviors and the requirements of our customers in order to develop new and different products and services to benefit them. All of this is done while taking into account their true needs and the fit with the economic circumstances at that moment. Customers have a variety of requirements, so we need to have marketing campaigns for mass and segmented targets."
"We care about and attentive to all customers within our portfolio at any time before and after they join us. Also, we help bring useful opportunities to the customers where occupation, income and financial planning are concerned."
"As we enter the digital age, consumer behaviors become increasingly online. To this end, KTC is developing products to accommodate this online preference of the customers. KTC members can already withdraw money online to the maximum limit of their credit 24 hours of the day through the TapKTC mobile application. There is no restriction whatsoever. We have also increased the number of banks to which the money can be transferred, in order to better facilitate the members. KTC is now the first and the only operator to charge no withdrawal, payment and other fees at all ATMs. Members can use the KTC Proud card to withdraw cash from an ATM of any bank without having to pay fees."
"Our campaigns for this second quarter are focused on alleviating the financial burdens of our customers at this time of prolonged economic slowdown. We also aim to create positive experience and satisfaction among existing members. The 'Debt Clearance' campaign has been held for a total of six times now over a period of five years. It is very well respond with more and more customers applying for it. Our offers are different in each year. The 'Free Dream Trip by KTC' campaign is a first in the Thai personal loan industry where members are given a chance to have new experience and relax from their daily routine. The 'Half Price Promotion' campaign offers up to 50% discount on interest when applying for KTC Proud. The current criteria require KTC Proud applicants to be a permanent employee of a private company or a civil servant or a state enterprise employee." with a monthly income of 12,000 Baht or higher.
"We hope these plans will help drive our personal loan business towards the expected targets of 15% growth in debtors amount and 160,000 members by the end of 2017. Above all, we want to help our members lighten their burden and make it possible for them to enjoy the life they want."