If authorities implement an open-data approach, Mr Tana says it could strengthen data analytics capabilities and support digital lending, financial inclusion and financial discipline across the entire financial system.
Line BK, one of Thailand's first digital banking platforms, has spent years developing its data analytics capabilities to better identify borrowers and ensure loans are extended to the appropriate customers.Trial and error
Line BK began offering digital banking services in October 2020. During its first year of operation, the platform faced a large number of borrowers with relatively high credit risks, said Tana Pothikamjorn, chief executive of Kasikorn Line Co, which operates the Line BK platform under a collaboration between Kasikornbank (KBank) and Line Corporation.
According to Mr Tana, Line BK focused on serving unserved and underserved groups as its customer segments comprised both creditworthy and less-qualified borrowers. Less-qualified customers may lack the ability to repay, financial discipline, or willingness to repay their debts.
"For the first year of operation, we acknowledged that our data analytics capabilities were not strong enough and we were seeing a flood of high-risk customers," he said.
