Bangkok--5 Feb--124 Communications Consulting
CFG Services, better known as Srisawad Ngern Tid Lor, successfully delivered a solid performance for 2014, in which the company saw over 10 billion baht of new loan and robust portfolio growth of 35%. Thanks to its prudent risk management policies, its non-performance loan was kept well under 1%, the lowest in the hire-purchase financing industry. Ngern Tid Lor also confirms its application for the nano-finance permit aiming to enable the grassroots to have a better access to transparent and reliable capitals and to extend the financial reach of its previous “Wet Market Loan” programme. This year, Ngern Tid Lor will open at least 40 more branches nationwide to expand its client base and cater to the growing demand for credits, in line with the brand’s concept “Fast & Easy Loans”.
Mr. Piyasak Ukritnukun, Managing Director of CFG Services Co. Ltd or Ngern Tid Lor, a Bank of Ayudhya subsidiary, and a leader in auto title loans and non-life insurance brokerage, with the most extensive branch network in Thailand, says the business performs better than expected, in terms of growth, we see 35% increase in our portfolio size having total new loan amount worth 10,568 million baht and well over 170,000 customers in the portfolio. Although it is the first year that the growth slowed down, Ngern Tid Lor is continuously regarded as the leader in this market segment considering the lowest NPL at below 1% whereas the industry’s average was 3-4%. These are the key indicators of successful policies on risk management and responsible lending based on fair assessment of customers loan repayment capabilities.
As for personal insurance brokerage business, Mr. Piyasak says “Ngern Tid Lor has become the country’s most extensive non-life insurance broker with more than 320 branches nationwide. By offering affordable insurance plans, we wish to educate the market about their daily life risk through our personal accident (PA) insurance campaign “Fast Service with Free PA Insurance”. Clients who are approved loans for motorcycle will get free personal insurance plan with the coverage of up to 300,000 baht. The campaign was very well-received by the public because they felt that it was an added value that could be beneficial for their lives. As a result, PA insurance sold last year reached 200 million baht, which was 200% growth from year 2013. The campaign echoed Ngern Tid Lor’s primary concept – Easy & Fast loan with special insurance for motorcyclists, who are the majority of Ngern Tid Lor’s clients.
Mr. Piyasak adds that “at the moment, Ngern tid Lor is applying for a license to conduct nano-finance scheme. The company believe that the scheme is beneficial to the self-employed people who do not have income evidence, such as vendors, farmers, and laborers. They can have access to loans with lower interest rate than those offered by informal lenders. In auto title loans industry, Ngern Tid Lor stays on top of mind of the grassroots as the no. 1 financial institution brand. By further providing nano-finance credit, the brand can leverage its experience from the wet market loans. At present, Ngern Tid Lor is offering services in more than 60 wet markets in Bangkok and upcountry having more than 2,500 current clients.
For this year, Piyasak plans to open more than 40 offices together with new campaign launches to offer loans that truly understand the needs of low-income people. However, Ngern Tid Lor will continue to place its cautious control on its risk management, and implement transparent and sincere collections practices to build upon the company’s strong and steady growth.