WorldLease, the motorcycle hire-purchase unit of CIMB Thai Bank, has developed the country's first self-application machine for motorcycle loans (SAMM) to facilitate quick credit approval for customers at dealerships.
Thaveepol Chareonkittikunpisal, managing director of WorldLease, yesterday said the bank wants the leasing company to accelerate loan growth within a short period and to develop a “blue ocean” strategy to cope with fierce competition in the motorcycle hire-purchase industry.
WorldLease had previously witnessed slowing growth, but since CIMB Thai became the major shareholder with 75 per cent of its registered capital, the company has resumed more active trading, he said.
To achieve success in the sector, credit approval for motorcycle loans must be quick and efficient, he said, adding that as today’s consumers are increasingly used to high technology in their daily lives, the company had decided to develop the self-application machine to reinforce traditional loan approval provided via credit staff.
The company, which designed both the hardware and software, test-ran the machine for a year to ensure it can provide credit services quickly and efficiently to customers, Thaveepol said.
WorldLease soft-launched the system in the middle of last year at motorcycle dealers nationwide, since which time the number of credit applicants using the machines has risen from 1,900 per month to about 3,000.
The executive described the system as an innovative product that is convenient for motorcycle buyers wanting to undertake quick loan transactions by themselves.
Using the normal method, it generally takes between 30 minutes and an hour to generate credit approval, but under the SAMM system the time taken is no more than half an hour.
Motorcycle buyers seeking a WorldLease loan insert their smart ID card in the machine and communicate with the company’s staff via the system to request a credit application form. WorldLease staff then interview the applicant online in real time before reaching a final decision.
WorldLease plans to expand the number of machines to 210 from the 180 currently in use, Thaveepol said.
Loan approval via the SAMM system is available for both new and used motorcycles. The company plans to improve the software to provide a swift service for cash motorcycle purchases as well as microfinance in the future, he said.
The ratio of loan approvals using the new system and traditional credit staff is currently 50:50, but the proportion of SAMM approvals will gradually increase after the number of machines is increased in upcountry provinces, which is the main market for motorcycle lenders.
The company has already extended Bt700 million of credit for SAMM-based lending, a level that is expected to increase to Bt1 billion by year-end, Thaveepol said.
Lending via the machines accounted for 50 per cent of new loans totalling Bt1.4 billion in the first six months of the year, while new-loan growth from all channels in the period was 35 per cent, higher than the target of 30 per cent for the full year, he added.
New lending this year is now expected to increase by 40 per cent, while outstanding loans are predicted to rise to Bt3 billion from the current Bt2.7 billion.
The company is applying for patent registration for the SAMM system with the Intellectual Property Department.