KBank turns focus on freelance workers

KBank turns focus on freelance workers

Kasikornbank (KBank) is targeting freelance workers by using a cross-selling strategy to expand its consumer finance business customer base.

Chatchai Payuhanaveechai, an executive vice-president, said that if KBank can persuade freelance and self-employed workers to deposit 4,000 baht per month for a year or two, it can be an instrument to build up savings discipline.
The savings will allow clients to apply for the bank's consumer loan products, including mortgages, personal loans, auto hire-purchase loans and credit cards without a salary slip requirement. The scheme covers both deposits and mutual funds.
After two years in the programme, customers can apply for housing loans with a maximum credit line of 500,000 baht. After one year of savings, clients can apply for auto loans up to 180,000 baht or a maximum credit line of 40,000 baht for a personal loan.
The higher the client's savings, the larger the credit line that will be offered. The maximum savings amount per month is set at 25,000 baht.
"Thailand has 66 million people, but only 17.9 million have the required financial documents to access a loan," he said, adding that participating depositors will also receive special interest rates on consumer loans.
The mass consumer market is the country's largest segment representing around 70% of those who qualify for consumer loans. KBank has only about 3% of the mass consumer market compared with its total client base for retail finance, leaving plenty of room to expand.
Mid-income employees, those who earn at least 15,000 baht per month, are the bank's largest base.
KBank, the country's third-largest bank in terms of total assets, projects 10,000 freelancers will participate in the programme, expanding loans to 3.5 billion baht this year.
In the future, KBank expects the programme will attract around 300,000 clients per year, contributing to a credit line of 35 billion baht per year.