Overhaul the Core Product and join forces with the parent bank
"What's different from the past and happening in 2568 is that, while we typically see tightening only certain groups during economic slowdowns, this year we're seeing tightening across all groups. While the economic slowdown generally doesn't impact new card issuance, the number of new cards this year has decreased, reflecting fewer customers available to card businesses than those closing their cards."
With over 25 years of experience in marketing and banking and finance Atit Rujirawat And throughout his more than 12 years with Krungsri Consumer, he was instrumental in the creation of Thailand's first retail credit card, earning the trust of Central Group Co., Ltd. to manage the credit cards and personal loans of the entire group under the brand "Central The One" for a long time.
On May 9, 2567 Athit Ruchirawat has been appointed as the Chief Executive Officer of Krungsri Consumer. New person, until now for more than 1 year and also holds the position of President of the Credit Card Business Club, Thai Bankers Association by Adis Gave a special interview with "Bank Finance" 2568 is a very challenging year for the unsecured lending business, including credit cards and personal loans.
A year of challenges
Consumers tighten their belts
Athit Ruchirawat, Chief Executive Officer, Krungsri Consumer, Bank of Ayudhya Public Company Limited He said the personal loan and credit card market in 2568 presents significant challenges due to several factors that have occurred since the beginning of the year, including the domestic political situation and changes in the international situation, such as the US retaliatory tariff policy, which may have been unclear initially but has now become clear at a rate of 19% for Thailand.
Furthermore, unexpected events, such as the earthquake in April, have had a two-dimensional impact. The first dimension is the impact on the tourism sector, which is a key driver of the Thai economy. The second dimension is the impact on consumer confidence, not just among the masses, but also extending to the affluent and super-affluent segments.
“It can be seen that people with money are starting to think more carefully before spending and are starting to tighten their belts.”
What is clearly visible is the change in spending behavior, resulting in a shift from high-priced products to more affordable or essential items. For example, spending in the restaurant category, fine dining and premium restaurants have seen a significant drop in sales, while inexpensive restaurants have been able to sustain themselves, and fast food has seen an increase.
Similarly, shopping has shifted from spending more in high-end supermarkets to hypermarkets. People who used to eat out are now buying fresh produce to cook at home, which reflects a shift from extravagant spending to more thoughtful spending due to a desire to control their spending.
"What's different from the past and happening in 2568 is that, while we typically see tightening only certain groups during economic slowdowns, this year we're seeing tightening across all groups. While the economic slowdown generally doesn't impact new card issuance, the number of new cards this year has decreased, reflecting fewer customers available to card businesses than those closing their cards."
Overall, credit card spending in the first half of 2568 reached 1,137,000 billion baht, a 0.8% increase compared to the same period the previous year, which is lower than the normal growth rate of 5-6%. Meanwhile, the number of new credit cards as of June 2568 was 26.23 million, a 0.6% decrease compared to the previous year.
While the outstanding loan balance of the credit card market as of June 2568 stood at 458,000 billion baht, a decrease of 2.5% from the same period last year, the non-performing loan (NPL) ratio at the end of March 2568 remained stable at 2.7%.
These are unprecedented figures, with both declining credit card spending and negative new card numbers reflecting current customers' reduced spending and reduced credit card demand. They're tightening their belts, carrying cash, and cutting costs.
However, Krungsri Consumer's performance continues to outperform the industry as of August 2568, with card spending of 254,800 billion baht, new loans of 60,800 billion baht, outstanding loans of 134,400 billion baht, and new customer accounts of 370,200.
Athit stated that credit cards are more of a payment tool than a loan. Credit cards are only considered a loan if customers don't pay in full. Overall, 70% of credit card users pay in full, with the remainder making partial payments. He believes credit cards will continue to grow, but the current picture is about consumer confidence, which is emotional and sentimental and may not fully reflect economic problems. Restoring confidence requires positive news to boost confidence.
A key indicator of whether consumer confidence will recover is the fourth quarter of 2025, which is the peak period for spending. If additional spending stimulus measures from the new government are implemented, they will help restore consumer confidence.
"We still believe that the decline in spending and new card applications is temporary. In August and September, we saw some recovery from the decline. The improved sentiment in many areas will likely lead to a rebound in Q4 2568, fueling a strong recovery into 2569."
Reorganize your home
Focus on the core of the business
There are always events that impact businesses at any given time. Looking back over the past 10 years, changes are constantly occurring. Athit said that during an era when many fintechs were emerging, Krungsri Consumer had to adapt its business to the current trends by trying to find a way for the business to survive and move forward if disrupted by fintech. This led to the establishment of the innovation and technology unit, Krungsri Finnovate.
A few years later, it was an era of risk reduction due to the global COVID-19 pandemic, which had widespread impacts. Therefore, businesses had to adapt to the current situation in order to survive.
The present era is less about seeking out new technologies, but more about applying them. The recent changes may have led Krungsri Consumer to stray too far from its true core business, forgetting its core revenue stream (Bread and Butter).
“Krungsri Consumer has begun reorganizing its internal product offerings, refocusing on core products, which we may have neglected in the past. This year, we will refocus on these core products and strengthen them.”
Athis said that Krungsri Consumer's home improvement initiative will be based on existing products, perhaps with a new perspective on some products to enhance consumer understanding. This initiative will begin with Krungsri First Choice, operated by Ayudhya Capital Services Co., Ltd., which has been overly broad in its business. He believes it should return to its core business, "installment loans," which began its transformation in May 2568.
“Over 10 years later, the term “installment loan” may no longer be well-known to today's customers. Therefore, Krungsri First Choice has changed the term to “cash card” to facilitate communication and better meet the needs of today's customers.”
After that, in July 2025, there was an adjustment in the Central The 1 Credit Card group by General Card Services Co., Ltd., which was an adjustment in the points from the original term X4, which later saw more competition in the same market, leading to an adjustment to T1 Dynamic Points, which is a new type of scoring that is more than before, to make the points valuable and encourage continued spending.
Additionally, Lotus's Credit Card, operated by Lotus Money Services Co., Ltd., has been revamped with new card benefits, offering increased value for every purchase and up to 6x Lotus Money Coins when using the card according to terms and conditions. This upgraded service meets the needs of card members.
In September, Krungsri Credit Card benefits were revamped. Krungsri Ayudhya Card Co., Ltd. plans to overhaul the card's benefits, focusing on categories customers spend on in their daily lives, such as shopping, dining, and travel. Next, the Krungsri Credit Card's rewards points will be revamped to further attract customers, under the concept "Life Worth Living."
“If customers already have a primary credit card in their wallet, but our card offers the same benefits, they won't switch. Therefore, we need to make our card offer good value enough for customers to choose it over other cards, which is about benefits and promotions.”
Credit cards must be used only when necessary and repaid in full on time to avoid the 16% annual interest rate. Personal loans have a normal interest rate of 25% per year. Borrow only when necessary and repay on time to avoid the 3-25% annual interest rate.
Close to the parent bank
join forces One Retail
Athis added that Krungsri Consumer will work even more closely with Bank of Ayudhya (the parent bank), focusing on leveraging the parent bank's large customer base and consolidating its strengths as "One Krungsri." The goal is to significantly increase product holdings for Krungsri Group customers, as product holdings between Krungsri Consumer and bank customers have not been closely linked. Currently, feasibility studies are underway to identify appropriate product formats.
The first project to be launched is “One Personal Loan” (One P-Loan), which aims to unify personal loan products. For example, if a customer wants a Krungsri personal loan, they can apply through all channels under one product.
“In the past, the bank and Krungsri Consumer have had different strengths. The bank excels at entrepreneurship, while we excel at individuals or salaried employees. Integrating these strengths will create a stronger, more integrated group between the bank and its subsidiaries, complementing each other.”
In addition to integrating with the parent bank, Krungsri will also strengthen its partnerships within the Krungsri ecosystem. For example, the Central The 1 credit card group, which has performed well with individual customers, will expand into the business credit card market for organizations that purchase products from Central Group.
Marketing strategies will shift from focusing on specific groups, such as promotions on brand-name products, to expanding into the daily lives of a wider range of consumers. This is partly due to economic challenges, which are forcing card businesses to reduce expenses, particularly in terms of marketing-related operating expenses.
Regarding market competition, despite the advent of "Buy Now, Pay Later" services, the current card business is not considered a particularly formidable competitor. Thais are already familiar with 0% interest installment plans on credit cards, as credit card operators understand the needs and behaviors of Thai consumers well.
For example, the introduction of popular foreign currency exchange cards was thought to impact credit card spending abroad. However, this has not been the case. Currently, international credit card spending continues to grow, as consumers who spend abroad use both credit cards and foreign currency exchange cards simultaneously.
Follow and read other columns in the October 2568 Bank Finance Journal, Issue 522, in digital format: https://goo.gl/U6OnIi
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