Kasikornbank turns to AI, prudent lending as Thailands economy slows, chief exec says

SINGAPORE, Nov 13 (Reuters) – Thailand’s second-largest lender Kasikornbank is relying on artificial intelligence and discreet lending to manage economic headwinds and fraud risks, chief executive Kattiya Indaravijaya told Reuters on Thursday.

The lender said it expects AI to have a “meaningful impact” on productivity growth within two years, adding that the bank is still in the early stages of ensuring every unit adopts it.

For example, he expects AI to help make more specific credit approval decisions and give insurers the ability to work on less precise applications.

Kattiya said the bank should be more cautious about lending as economic conditions in Thailand are still sluggish.

He noted that the country’s GDP is expected to grow less than 2% per year over the next two to three years and that the government needs medium to long-term structural change.

Thailand’s economy is struggling with the impact of US tariffs on its exports and low consumption levels as households become mired in debt.

The strong Thai baht also threatens both exports and tourism; The country is currently grappling with a 7% annual decline in foreign inflows.

“We have seen some signs since 2022 that we need to be very careful, so we have adjusted our credit policy,” he said.

The bank’s non-performing loans ratio has improved as the bank lends mainly to customers with good credit or payment history.

While the bank has received offers for mergers or acquisitions of fintech companies, Kattiya said the bank is not actively working on any deals.

He added that any deal struck must be in line with the lender’s existing strategy and add value to both its customers and the bank’s shareholders.

“We have to think very carefully before making any decision, but there are always choices,” he said.

(Reporting by Jun Yuan Yong; Editing by David Stanway)