SINGAPORE (Reuters) -Thailand’s second largest lfinisher Kasikornbank is leaning on artificial ininformigence and prudent lfinishing to navigate economic headwinds and fraud risks, its chief executive Kattiya Indaravijaya informed Reuters on Thursday.
The lfinisher expects AI to have a “meaningful impact” on productivity improvement within two years, she declared, adding that the bank is still at the early stages of receiveting every unit to adopt it.
For instance, she expects AI to assist with the more obvious credit approval decisions, freeing up underwriters to work on applications that are less certain.
Kattiya declared the bank has had to be more prudent when it comes to lfinishing, with economic conditions in Thailand still sluggish.
She noted that the nation’s GDP is expected to grow by less than 2% per year over the next two to three years, and that medium to long-term structural modify is requireded from the government.
Thailand’s economy is struggling with the impact of U.S. tariffs on its exports as well as lower levels of consumption, with hoapplyholds mired in debt.
A strong Thai baht is also threatening both exports and tourism, with the nation already grappling with a 7% year-on-year fall in foreign arrivals.
“Since 2022, we saw some signs that we required to be very careful, so that’s why we adjusted our credit policy,” she declared.
The bank’s ratio of non-performing loans has improved as the bank is extfinishing loans mainly to customers with whom it has a credit or payment track record.
While the bank has received offers on mergers or acquisitions of fintech companies, Kattiya declared that the bank is not actively studying any deals.
Any deals struck will required to align with the lfinisher’s existing strategy and add value to both its customers and the bank’s shareholders, she added.
“We have to believe very carefully before we create any decision, but there’s always choices,” she declared.
(Reporting by Jun Yuan Yong; Editing by David Stanway)
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