Krungsri starts AI lending for Grab drivers

Bank of Ayudhya (Krungsri) announced plans to offer loans to Grab drivers and merchants on Grab’s platform in Thailand of up to 100,000 baht with a maximum interest rate of 33%, part of a long-term partnership with Grab Thailand.

Krungsri’s parent group, Mitsubishi UFJ Financial Group (MUFG), announced a partnership with Grab earlier this year, where MUFG Bank will invest in Grab, and MUFG Innovation Partners and Krungsri Finnovate will co-develop financial products and services.

“Krungsri and Grab have entered into an exclusive long-term business agreement, jointly establishing three-year visions and strategies to expand our customer base and deliver an impressive customer experience,” said Pairote Cheunkrut, Krungsri’s chief strategy officer.

“Through big data customer analytics and AI-powered data analysis, the appropriate financial services will be delivered to customers via platforms used for daily activities, such as KMA, UChoose, GO by Krungsri Auto Application and Grab, among others.

“In addition, Krungsri and Grab will continue to enhance competitive advantages to cover new market segments, while understanding, accessing and adding value for customers to make them part of the digital infrastructure built by Krungsri and Grab.”

The two new products will be launched by the end of the year and entail separate loan schemes for Grab drivers and merchants.

The maximum credit limit is set at 100,000 baht with a maximum interest rate of 33%. The instalment period is up to six months. Borrowers can choose their preferred credit limits and instalment plans upon applying.

Grab will automatically deduct loan payments from the drivers’ accounts on the platform.

By submitting information through the application for Grab driver-partners and merchant-partners, partners can complete their loan application without additional documents or a guarantor required.

In addition, Grab’s drivers will get cash transferred to their e-wallet in the Grab app immediately after approval, while Grab merchants will get cash credited to their bank account on the next business day.

“Grab Financial Group wants to help Thais through financial inclusion,” said Worachat Luxkanalode, country head of Grab Financial Group Thailand.

“Equipped with expertise in behavioural analytics and new credit analysis models, we will respond to the needs of those who find it difficult to access traditional financial services.”