Bangkok--9 Jan--KASIKORNBANK
KASIKORNBANK has introduced an electronic letter of guarantee service, allowing customers to issue and renew letters of guarantee (LG) online 24 hours a day, a service that facilitates customer flexibility in construction contracting. In 2016, KBank topped the industry in providing LG service at an outstanding balance of 290 billion Baht, for a 24-percent market share.
According to Mr. Silawat Santivisat, KBank Executive Vice President, construction contracting is a fast-growing business with bright prospects in 2017, since it benefits from the government's investment and stimulus measures. Thus, contractors' loan demand is on the rise, while they also use LG to secure construction projects. Last year the Bank's LG service surged 23 percent over-year.
To match customer demand, KBank, therefore, has introduced technologies to provide "K-Smart Guarantee", a new product that covers guarantee obligation check, LG issuance and renewal, through the www.kasikornbank.com website. Under this service, customers can issue and renew LG online on any communication device, 24/7. A hard copy of LG can be received at a KBank branch for customer flexibility in construction contracting. This efficient service will help contractors avoid missing business opportunities, while saving them both time and money.
Mr. Silawat added that some of KBank customers have signed on to a number of construction projects, boosting LG issuance during some busy periods to as many as 800 per day. As a result, they face difficulties in managing related information, including matching issued LG with respective trade partners, due dates, credit limits, etc. With K-Smart Guarantee, customers' business administration can be done more efficiently through credit limit inquiry service, reports of individual LG transactions, fast and accurate new LG issuance, and automatic LG status alert. Placing emphasis on system security, KBank requires customers to perform the authentication process each time they use the online service. They can also set up authorized users to access their information at different levels.
In 2016, LG market value totaled 1.2 trillion Baht, up 18 percent over-year, of which 290 billion Baht was issued by KBank, representing a 24-percent market share, which made KBank the top market player. It is expected that LG issuance in 2017 will equal 1.3 trillion Baht, an increase of 10 percent. Thus, KBank aims to grab a market share of at least 25 percent this year.
Currently, K-Smart Guarantee offers only the LG information inquiry service, while its online LG issuance and renewal service will be launched within the first quarter of this year. Interested customers may apply for the service via KBank relationship managers, or ask for more information by calling the K-BIZ Contact Center at tel. 02-888-8822.