Consumer loan, credit card and personal loan are expected to expand further this year as economic activities return. Relaxing LTV measure should help stimulate demands for mortgage. EV package from the government should also help support hire purchase loans. However, the credit standard could be tightened amid concerns over households’ debt serviceability. In addition, the growth of mortgage loan and car loan should accelerate after a drop in previous year. Deposits are likely to decelerate partly because of returning economic activities. Also, given a low interest rate level, low returns from deposits will encourage depositors to allocate their savings to other financial products with higher returns than term deposit, which offers low interest rate since mid-2020. Additionally, the slow increase in loan growth together with prevailing high liquidity will not lead to intense deposit competition. • Ongoing Challenges in Banking Business in 2022 1. Nano/Micro Lending via Digital Channels After commercial banks have invested in digital infrastructure to reduce operating costs and provide greater opportunity of wider customer reach, banks now began to utilize detailed data extracted from digital platform to provide a financial product that satisfy customer’s needs with prompt response as well as enhancing more efficiency in risk management. The product is digital lending which continued to grow after Bank of Thailand allowed financial institutions both bank and non-bank to acquire licenses to operate. Digital lending helps customers with unreliable sources of income to provide substantial supporting evidence to apply for loans. Digital information such as utility bills and online transactions can be used as supporting evidence. With more competitions from non-financial players in the digital lending market, banks need to develop technologies to enhance their risk management and their competitiveness. 2. National Digital ID (NDID) Platform National Digital ID is a new online cross-bank identity verification which offers a new choice that the customers do not have to present him/herself right at the bank. In other way, they can however request the original bank, which their identification process with the bank had been already once done, to send the identification data to a new bank instead (Authentication). This will significantly cut the numbers of related documents and redundant working process, especially between the banks. Accordingly, it will reduce operating cost and provide more convenient financial services for people and businesses in a timely manner and with global-standard safety. This thus helps enhancing the ease of doing business in Thailand in another way. In the first phase, the verification platform will be applied only in opening bank accounts and loan approval. Later, in the second phase, it is expected to be more widely used in opening portfolio account, mutual fund and insurance services for those foreigners as well as corporate. 66 TMBThanachart Bank Public Company Limited
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