Banking on success: Line BK logs in for double-digit loan growth
In a bold move against economic headwinds, Line BK, the social banking brainchild of Kasikornbank (KBank) and Line Corp, is setting its sights on a double-digit loan growth surge this year, powered by cutting-edge technology.
Eyeing a hefty 3-4 billion baht boost in new loans, Line BK is steering towards a 13-18% growth, up from last year’s 22 billion baht loan portfolio.
Navigating these ambitious targets is none other than Kasikorn Line’s Chief Executive, 46 year old Tana Pothikamjorn, who aims to lift total loans by 1 billion baht, marking a commendable 4.5% year-on-year bump.
KBank’s 2025 vision, laid out in financial projections to the Stock Exchange of Thailand, reveals a cautious stance on overall loan growth amid a dim GDP forecast of just 2.4%. Yet, Line BK is unfazed, wielding social media and AI-enhanced non-financial data to probe loan approvals, outstripping their rivals in alternative data usage.
Tana asserts that Line BK’s edge lies in its “social banking” approach, gauging credit risk through customer habits like utility bill punctuality, alongside traditional metrics of financial statements and credit histories from the National Credit Bureau.
Despite the tough economic landscape, Line BK held its non-performing loan ratio steady at 3% last year, striving to sustain this through 2025 with refined credit scoring and savvy customer segmentation strategies.
Since its 2020 debut, Line BK has grown its active loan accounts to a towering 700,000, serving a total of 7.4 million users, with services spanning digital lending, deposits, and insurance.
With promising growth on the horizon, income contributions to main shareholders are likely to see an uptick this year, Tana said.
Meanwhile, Kasikornbank, Thailand’s third-largest bank by assets, and a digital banking powerhouse, aims to extend its K-Plus mobile app reach from 23.1 million to 23.9 million users.
Chief Executive Kattiya Indaravijaya revealed these plans in a recent analysts’ meet, also earmarking an expansion of the K-Biz app’s user base to 2.1 million, from the current 1.2 million.
Kattiya underscored KBank’s commitment to harnessing advanced tech and AI to empower its 24 million-plus customer base to achieve their financial dreams. It seems no challenge is too big for KBank as it charges forward into a promising digital future.
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