The new solution marks Thailand's first e-marketplace end-to-end digital lending platform and reinforces SCB's industry leadership
Siam Commercial Bank (SCB) announces the success of "Clickcash" (Mae Manee Sri Online), Thailand's first end-to-end digital lending platform for SMEs. The platform leverages AI and machine learning technology developed by SCB Abacus – an advanced analytics spin-off by SCB. Designed for SMEs on Lazada e-marketplace, the new online SME loan takes only 15 minutes for loan approval with an interest rate as low as 1.59% per month. Service has expanded from Bangkok to 20 provinces across Thailand. This success marks the first end-to-end digital lending platform in Thailand's banking industry, allowing SMEs to access funding with ease to increase liquidity and expand their business to stay competitive in the age of thriving e-commerce.
Mrs. Pimolpa Suntichok, Senior Executive Vice President and Head of Commercial Banking Solutions, Siam Commercial Bank, said that, "As the customer behavior changes, businesses of all sizes, including SMEs, need to consistently adjust their strategy to keep up with the disrupted market landscape. Siam Commercial Bank understands the importance of leveraging technology to drive business growth, and strives to develop a comprehensive digital banking platform ("bank as a platform") in order to maintain industry leadership. This is exemplified by the recent revamp of SCB Easy app, the launch of StartBiz app, and the platform SCB Business Anywhere to serve as a tool for corporate customers to operate their businesses. In addition, we continue to create synergy with several partners to strengthen our platform while provide businesses with opportunity to access new technology. SCB's partnership with Lazada, the largest e-commerce platform in Southeast Asia, reflects the bank's vision in promoting financial inclusion and business growth, with SCB Abacus as the technology provider in developing the innovative solution of Clickcash lending platform."
According to Dr. Sutapa Amornvivat, Chief Executive Officer, SCB Abacus "Today, there are many Thai SMEs on e-commerce platforms with strong growth potential but are unable to expand their businesses due to lack of financing. The traditional lending practice of commercial banks favors only well-established SME businesses, involves a lengthy loan approval process, and requires large amounts of documentation. The goal behind the development of the lending platform is to help SME businesses expand by answering to the increased needs for on-demand services within limited timeframe and facilitate end-to-end digital processes. As result, our digital platform benefits from reduced operating costs which translate to more favorable interest rate for customers. The loan process is enabled by AI and machine learning technology for credit scoring and personalization of appropriate loan terms and credit line. These process can be completed within 15 minutes without requiring any paperwork. This contrasts with the traditional banking process which can take between 3 days up to one week."
SCB has piloted this platform on the Lazada e-marketplace since June 2018. The service has received overwhelming responses from customers and yet to record any late payments. The success of the digital lending platform in leveraging innovative technology to enhance customer experience is recognized international awards and accolades, including the Global Retail Banking Innovation Awards 2018 in Best Data Analytics Initiative category, hosted by The Digital Banker and the IDC Digital Transformation Awards 2018 in the Digital Disruptor of the Year category, hosted by IDC (International Data Corporation).
Mr. James Dong, Chief Executive Officer, Lazada Thailand further added "Sellers on the Lazada are able to access funding with greater ease than before especially in periods of peak demand such as the annual Lazada 11.11 Shopping Festival campaign. This campaign has shown the exponential growth of the e-commerce industry in with a record number of 20 million shoppers within the first 24 hours across Southeast Asia. The collaboration between SCB and Lazada has uplifted the financing experience for SMEs – helping Lazada sellers to respond to the market rapidly. SCB Abacus' technological edge and agility has further elevated the partnership enabled us to build a platform which provides value for our sellers. SCB's digital lending platform has helped Thai SMEs to remain competitive, which coincides with Lazada's vision of building a sustainable e-commerce ecosystem in SEA with the goal to support 8 million e-commerce and SME operators by 2030."
Miss Pattama Pumchat, owner of Tiger Riding Shop, a seller on the Lazada platform who has applied for the Clickcash loan, revealed that "SCB's new digital SME loan has helped me to expand my business quickly and survive in the ever-changing market. The approval process is fast. All I needed to do was to complete online application – no need to visit the bank in person and prepare masses of paperwork. This gives me more time to focus on operating and growing my business."