Nature of Business
Nature of products or services and business innovation development
At present, the Company offers secured loans, unsecured loans, and regulated personal loans under the supervision of the Bank of Thailand (“BOT”). The Company has been licensed to conduct:
- regulated retail loan for occupation (Nano financing); and
- regulated personal loan business from the Ministry of Finance since March 2019 and June 2019 respectively
Based on credit risk, the Company’s loan products can be classified into the following 2 major groups.
Hire Purchase
The Company offer hire purchase for general retail customers who wish to purchase used cars such as cars, pickup trucks, motorcycles, and vehicles used for agriculture etc.
As of December 31, 2023 interest income from hire purchase accounted for 30.0% of the total revenues.
Regulated personal loan with motor vehicle registration as collateral
Regulated personal loan with motor vehicle registration as collateral is a loan service for general retail customers who own a vehicle by using vehicle registration manual as collateral for application of the loan. The customer must have ownership in the vehicle. The customer pays monthly installments consisting of principal and interest.
As of December 31, 2023 the Company’s interest income from regulated personal loan with motor vehicle registration as collateral accounted for 53.4% of the total revenues.
Sample of the types of motor vehicle which are used as collaterals
Mortgage Loan
Mortgage loan is a loan service for general retail customers who own a house or land. The owner of house or land as mortgagor registers mortgage over the house or land as collateral to the Company as mortgagee. The customer provides the land title deed to the Company as collateral on the date on which he or she receives the loan proceeds.
As of December 31, 2023, the Company’s interest income from mortgage loan accounted for 1.2% of the total revenues respectively.
Regulated personal loan without motor vehicle registration as collateral
Regulated personal loan without motor vehicle registration as collateral is a multi-purpose loan for individual customers with steady income and can provide proof of income such as government and state enterprise officers and private sector employees etc.
As of December 31, 2023 the Company’s interest income from regulated personal loan without motor vehicle registration as collateral accounted 0.6% of the total revenues.
Nano financing
The Company provides nano finance loans to general retail customers that are intended for professional use for customers who neither have proof of income or asset as collateral. The customer must be qualified as a professional with a permanent establishment and must have evidence and place of occupation and a clear source of income from occupation. The Company will assess income, inspect and take pictures of the place of occupation as evidence for credit consideration or a person who has a document certifying occupation, such as a certificate of trade registration or farmer’s registration book etc., to be used as evidence for application for a loan.
As of December 31,2023 the Company’s interest income from nano financing accounted for 3.7% of the total revenues.
The Company provides non-life insurance and life insurance brokerage services through a network of branches. The Company obtained a license to act as life insurance and non-life insurance brokers from the Office of Insurance Commission (“OIC”). At present, the Company is a non-life insurance broker and a life insurance broker for 14 leading insurance companies, covering products such as car insurance, motorcycle insurance, accident insurance, and life insurance etc. The Company will receive compensation as a commission from the insurance companies at mutually agreed rates which are recorded as fee and service income under the Company’s financial statements.
The Company places importance on information technology system which is used to develop and improve efficiency of the loan services and support growth of the Company’s business, as well as being prepared for changes in consumers and technology (Digital Disruptions) that may occur in the future.
At present, the Company has begun to use information technology to improve its efficiency and operating processes and provide customers with services that are convenient, fast, safe, and up-to-date. Examples of this implementation include improving efficiency in providing loans to customers, receiving payments, debt collection tracking, branch management, personal information protection, and development of various work procedures so that customers can receive quick and convenient services.
Particularly, the Company focuses on system and information security to ensure that its information is managed securely and safely. The Company has continuously received ISO/IEC 27001 certification for the information security management system from 2018 until present.
Development and improvement of information technology infrastructure, including core leasing system architecture and information system development plan for the period of 1 – 3 years (3-Year IT Roadmap)
Based on the operating plan for 2023, the Company has decided to invest in development of the core leasing system by evaluating its ability to respond to the Company’s future strategic direction and goals and sustainability of technology. The information system development plan in 1-3 years will be divided into 3 phases:
Short-term plan For the year 2024, the Company focuses on improving projects by digitization and transformation with quick wins to solve urgent problems, increase business agility by developing communication systems within the Company, adjust work processes and systems and convert to electronic documents, including E-KYC, E-Consent, E-Signature, E-Application, E-Contract, E-Stamp Duty, and E-Tax etc. The Company will also develop robotic process automation to reduce work redundancy and errors at work.
Medium-term plan For the year 2024-2025, the Company plans to change the core leasing system through modernization which allows creating new loan products with flexibility and speed and keeps up with changes and competition in the market. The system will have complete functions, support business growth, increase competitiveness and safety, and reduce risk of system errors. The enterprise architecture process is used for planning new technology and developing a mobile platform to increase efficiency in providing services to employees and customers who come to use the services. The Company will develop a document management system which quickly responds to services and maximizes efficiency.
Long-term plan From the year 2027 onwards, the Company plans to develop an efficient reporting process (Optimize and Adjust) and increase its ability to analyze business opportunities. It will create a data analysis system that is beneficial to the business by using business intelligence tools as information to improve business cooperation with business partners and various organizations.