Digital lenders focusing on risk control

Digital loan providers are emphasising risk control because of economic uncertainties, the continued outbreak and tougher competition from new players.

Line BK, a social banking platform collaboration between Kasikornbank (KBank) and Line Corporation, is focusing on asset quality for 2022 rather than loan growth amid the economic uncertainties, especially the Omicron outbreak, said Tana Pothikamjorn, chief executive of Kasikorn Line Ltd.

The company will continue to tighten new loan offerings, meaning its loan approval rate could fall in line with economic circumstances and the credit risk of applicants, said Mr Tana.

The company is monitoring the impact of the Omicron variant after the Delta variant adversely affected customers, he said.

Line BK, the country’s leading digital loan provider, reported in July last year its loan approval rate was around 20% of total…