TrueMoney upbeat on virtual bank potential

TrueMoney, a Southeast Asian e-payment and financial services provider, believes in the potential of offering virtual banking services.
The company is a partner in one of five consortia that have applied for virtual bank licences from the Bank of Thailand (BoT), which is expected to choose three winners next year.
While approval depends on the regulator, TrueMoney believes its business model aligns well with the central bank’s requirements, particularly in serving the underbanked customer segment, said Tanyapong Thamavranukupt, co-president of Ascend Money Co Ltd, the operator of the TrueMoney app. 
Currently, TrueMoney provides digital lending products, such as Pay Next and Pay Next Extra, with a digital personal loan licence from the central bank, targeting underbanked customers. About 60-70% of TrueMoney’s clients have limited access to traditional bank loans.
The company’s digital loans outstanding total 20 billion baht, accumulated over the past two and a half years. Despite economic challenges, TrueMoney has maintained a non-performing loan (NPL) ratio of 7.5%, considered satisfactory for the sector, according to Mr Tanyapong.
“We don’t require loan applicants to have a credit record in the National Credit Bureau. Instead, we use an alternative credit scoring system based on their financial behaviour on the TrueMoney app,” he said.
The company employs both agency services and digital channels for debt collection, adapting to customer needs.
Ascend Money has been offering financial services on digital platforms for nearly nine years, helping to enhance access to financial products for Thai consumers and contributing to improved financial inclusion in the country.
While digital payments remain a core offering, the company has also expanded into digital lending and digital insurance.
For digital insurance, it provides affordable options for consumers, with premiums starting at just 15 baht, making financial products more accessible.
Ascend Money is part of the CP Group, and as such is able to tap into the conglomerate’s retail channels, such as 7-Eleven.
In its application for a virtual banking licence, the company is partnering with Ant Group, a Chinese fintech company affiliated with Alibaba, and a shareholder in CP’s Ascend Group.