KLeasing wins 'Most Innovative Auto Finance Company 2023' while gearing up for advancing auto loan services through innovations

Stocks News Thursday February 8, 2024 13:50 —PRESS RELEASE LOCAL

KLeasing wins 'Most Innovative Auto Finance Company 2023' while gearing up for advancing auto loan services through innovations

KASIKORN LEASING CO., LTD. (KLeasing) has been honored with the 'Most Innovative Auto Finance Company 2023' award by the International Finance Awards. This prestigious event, now in its 11th year, recognizes exceptional organizations on a global scale. Winners are selected from leading organizations worldwide. KLeasing has earned this recognition for its continuous development of outstanding innovations aimed at meeting the needs of customers in the digital era.

Mr. Tirachart Chiracharasporn, KLeasing Managing Director, said, "In 2023, the company launched the Digital Self-Apply innovation, a one-stop, user-friendly platform which allows customers to apply for auto loans by themselves via digital channels. This platform utilizes identity verification technology and processes credit scoring entirely online, making it easier for customers to apply for auto loans and receive credit approval results in real time. This service was designed to accommodate the prevailing lifestyles of our customers, and this award is in recognition of KLeasing's commitment in that regard."

"In 2023, KLeasing's auto loan applications through the Digital Self-Apply channel accounted for 8 percent of all auto loan (new car) applications, which surged 14 percent even as overall car sales in the domestic market plunged 8.7 percent YoY to 775,780 units. Although the overall Thai economy and domestic car market may recover unevenly, and there are uncertainties surrounding several issues that have affected operations and asset quality of the auto loan business, KLeasing has been able to maintain its asset quality at a level far beyond the industry average, including NPLs and special mention loans, allowing the company to enjoy the highest profit before the deductions of reserves and taxes to date".

Regarding the overall Thai automotive industry in 2024, KResearch projects that domestic car sales this year will be almost on par with 2023, while the outstanding balance of auto hire purchase loans in the commercial banking system will grow by 1.5 percent (1.0-2.0 percent) YoY. In addition, Mr. Tirachart anticipates that lenders will focus on asset quality management and compliance with the Bank of Thailand's responsible lending guidelines. Car sales are expected to reach 790,000 units, driven by new car models gradually launched by auto manufacturers to penetrate new market segments and target groups with purchasing power and loan repayment ability.

Mr. Tirachart added, "In 2024, KLeasing will continue to enhance our lending standards for customers in the digital age. Focus is on K EV SHOP, featuring exclusive campaigns in collaboration with leading electric vehicle (EV) brands, while developing API services in connection with platforms of partner car companies for customers to buy cars in response to their lifestyle needs via K PLUS. The K EV SHOP will also be connected to the Digital Self-Apply platform, allowing customers to apply for auto loans by themselves and be informed of the approval results instantly. This pilot program may lead to new patterns of auto loan application in Thailand in the future. Plus, we aim to offer attractive campaigns throughout the year across all segments, addressing the needs of both business and retail customers. Additionally, KLeasing will continue to introduce projects in alignment with KBank's ESG strategies".

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