NTT DATA Boosts Thai Household Access to Loans with High Growth in Digital Lending, Unveils Lending Platform to Empower Lending Businesses
Bangkok – 3rd April 2023, NTT DATA (Thailand) a subsidiary of NTT DATA Corporation and a global digital business and IT service leader, has identified a high potential for growth in the lending industry, particularly for digital loans, which are considered a shining star of the business. Digital loans are helping to unlock easier access to credit for Thai households, following a surge in household debt in the country’s post-COVID crisis. NTT DATA advises businesses to address five major challenges to compete for a larger market share in lending, while introducing its Lending Platform service to improve the end-to-end loan process and integrate with other platforms seamlessly, reducing complexity and increasing debt management efficiency.
Mr. Paurapot Nantavidhya, Executive Vice President and Sales Director of Products and Services for Financial and Banking Group, NTT DATA (Thailand) Co., Ltd. revealed that there is currently a high potential for credit access in Thailand. However, a significant obstacle is the limited access to credit for households. According to data from the Bank of Thailand’s household financial services survey in 2020, only 30.5% (or 6.7 million) of Thai households had access to financial institution credit services. Furthermore, the latest research from Kasikorn Research Center forecasts that household debt in Thailand will exceed 84% of GDP, indicating that Thai households lack financial flexibility and have a strong need for credit access to restore financial stability. This is in line with the Bank of Thailand’s consumer loan survey for the first quarter of 2022, which found an increase in demand for credit card loans from households with insufficient savings for consumption and financial management, and a continued expansion of consumer loan demand in all categories in the second quarter of the same year.
Digital loans have become a product that helps lenders increase their access to Thai households. However, there are important challenges that lenders must address to enhance their competitiveness and market share, including: 1) developing a fully prepared ecosystem to obtain the most complete customer data, which can be used to assess risk effectively and motivate debt repayment, 2) understanding customer behavior and improving the efficiency of borrower verification and data analysis for identity verification, 3) implementing efficient debt collection at a reasonable cost, 4) preparing for intense competition in the market, and 5) ensuring safety and transparency in compliance with relevant regulations, such as the Personal Data Protection Act.
NTT DATA (Thailand) supports lending businesses with an end-to-end Lending Platform Ecosystem that covers Digital Onboarding, Loan Origination, and Loan Management. The service includes consultation, strategy planning, suitable infrastructure selection, system installation, and ongoing application support. With over 10 years of experience in Payment & Loyalty Mechanism service, NTT Data (Thailand) can leverage its experience to develop a secure and accurate working environment that caters to the financial and banking customers’ needs.
Mr. Paurapot said that the Lending Platform service will help improve the work process by reducing complexity in the workflow and increasing efficiency in debt management. The service covers the entire process of providing full-cycle loans, starting from:
- Digital Onboarding, which is the process of registering or applying for membership through online channels without having to fill out multiple forms, focusing on reducing paper usage by using electronic documents and verifying information online with reliable agencies, such as e-Statement, e-KYC, and the Department Of Provincial Administration, and using AI for face recognition to help identify and verify loan applicants, to prevent fraud from the registration process. The platform also uses an e-Sign system to speed up the work process.
The Loan Origination System is the process of analyzing and assessing the qualifications of loan applicants, personal information, financial information, and credit history, which is connected to the National Credit Bureau system to check and reduce the risk of future bad debts. The system can support the setting of conditions and requirements for loan approval.
- The Loan Management System covers the entire loan management process, from calculating the principal amount, interest rates, fees, and various service charges, to transferring the loan amount to customers, issuing invoices, and receiving loan payments through various channels, such as by connecting to bank systems through APIs to support payment via applications.
The Loan Collection system is a debt tracking system that supports the work of the debt collection team, which displays dashboard reports, sends reminders, and tracks the debt collection process to help manage debt effectively. The system also supports debt restructuring and settlement processes to reduce the risk of default.
In addition, the Lending Platform system is an Ecosystem for lending that can be installed in various formats, either on private clouds or with cloud service providers. It can also be installed on an organization’s server (On-Premise), making lending business operations easier, more accurate, and more secure. This includes loan evaluation and approval, calculation, and debt repayment plan monitoring. It can also integrate with other platforms through API systems, which can support long-term changes and help businesses keep up with the competition in a highly competitive market.
About NTT Data (Thailand) Co., Ltd.
NTT DATA (Thailand) Co., Ltd. or NTT DATA (Thailand) is a subsidiary of NTT DATA Corporation Co., Ltd., a global digital business and IT service leader, originally from Japan. NTT DATA has expertise in managing data networks and telecommunications at the forefront with over 139,500 employees worldwide, operating in more than 50 countries with experience serving leading companies, especially Japanese companies that have established in various countries around the world. In 2020, NTT DATA was ranked 6th in the global IT service provider market from Gartner. NTT DATA (Thailand) started as a technology system provider in payment solutions for debit and credit cards, including web-based and mobile applications, and has been trusted to serve financial sectors in the payment system for a long time. From such expertise, the company has been developed to serve customers in various industries, such as manufacturing, telecommunication, energy, and retail. As a result, NTT DATA (Thailand) has become an IT consulting company, including the design and development of technology solutions that are recognized with world-class standards, flexible to work as well as pay attention to quality and services for the best benefit of customers. For more information, visit the website https://www.nttdata.com/th/en and Facebook page https://www.facebook.com/nttdatathai.
Media inquiry, please contact:
Ms. Warintorn Ngamwilaiphorn
NTT DATA (Thailand) Co., Ltd.
About NTT DATA
NTT DATA – a part of NTT Group – is a trusted global innovator of IT and business services headquartered in Tokyo. We help clients transform through consulting, industry solutions, business process services, IT modernization and managed services. NTT DATA enables clients, as well as society, to move confidently into the digital future. We are committed to our clients’ long-term success and combine global reach with local client attention to serve them in over 50 countries. Visit us at nttdata.com.