In a time when partnerships are forged in the ecosystem to create new market opportunities, and embedded finance is gaining momentum as an important strategic option; Kasikorn Bank and Line Corporation’s joint venture ‘Line BK’ was most opportune. Line BK aims to offer accessible financial services and reach the underbanked and unbanked population by becoming Thailand’s first social bank. With Line BK, banking products and services are fully embedded in the LINE messaging app offering deposit accounts, money transfers, and unsecured loans. This partnership helps credit risk decisioning process by using alternative data from LINE’s messaging and other services.
Kline opted to implement Finacle stack, including Finacle Origination Suite, Finacle Core Banking solution and Finacle Digital Lending Solution. Finacle’s configuration and parameterization supported the flexible lending products and fully digital customer experience that Line BK wanted to offer. The solution’s componentized design provided the flexibility for independently deploying various modules of the solution and then integrating them with LINE App for a seamless customer experience. Leveraging the Finacle solution, LINE BK is able to offer its customers the flexibility to tailor these loan products to meet their specific requirements, ranging from loan amount, tenure, and whether the credit is a term loan or overdraft.
Line BK built a unique credit scoring model which combines conventional information that Kasikorn Bank provides and real-time information from Line, which includes up to 5,000 individual data components. The two scores are processed real-time in the Finacle Loan Origination Solution to deliver the lending decision to the customer. This information provides relevant and refined inputs that is not available to other lenders in the market. This enabled Line BK to identify the customer behavior with predictive analytics for measuring their creditworthiness in real time.
Less than two months for LINE BK to acquire one million customers
Over two million debit cards issued
Granted loans to over 500,000 customers
Total value of loans outstanding is over THB15 billion ($450 million)
30% of the applicants for lending products are those excluded by other lenders
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