NCB recommends accelerating the creation of a good credit culture before moving towards risk-based pricing.

NCB points out that risk-based pricing allows people with good credit to receive lower interest rates. This requires building information readiness and a culture of creditworthiness. It recommends checking credit information after discovering an increase in fraudulent account openings.

Dr. Laxman Atthapich, Managing Director of National Credit Bureau Co., Ltd. or NCB say Topic: Cracking the NCB Code: From Data to Opportunities at the 1st BAM SYMPOSIUM Seminar: New Era of AMC 2025 "Revitalizing Assets, Driving the Thai Economy" organized by Bangkok Commercial Asset Management Public Company Limited. On October 28, 2568, at the Napalai Grand Ballroom, Dusit Thani Hotel, Bangkok, the National Credit Bureau Co., Ltd. (NCB) is an organization that plays a very important role in laying the foundation for financial stability and designing economic policies for Thailand.

NCB operates under the Credit Information Business Act and is supervised by the Credit Information Protection Committee. NCB's primary mission is to systematically collect, store and transmit credit information as a key to unlocking financial opportunities. (Thailand's credit information system is voluntary.)

This means that financial institutions and agencies wishing to submit credit information to NCB must apply to become members of the company. Members who submit and use information. NCB members who are required by law to submit credit information include commercial banks, state-owned banks, credit card companies, non-banks (various personal loan companies), hire-purchase/leasing companies, and savings cooperatives.

These members will submit credit information monthly and are required to notify customers within 30 days of the submission date. Members will use the credit information for credit analysis and risk management purposes, with prior consent from the data owner.

The credit information that members submit to NCB for collection is divided into two main parts.

first part It is the identification of the customer and its characteristics (identifying information). For natural persons: it includes name, address, date of birth, marital status, national identification number or government official identification card, passport, and tax identification number (if any). For juristic persons: it includes name, location, juristic person registration number or tax identification number.

Part 2 Credit history is purely factual information about a customer's financial behavior. It includes: history of credit applications and approvals; all open and closed accounts, including credit limits; and payment history, including both good and late payments. This information is kept for a period not exceeding three years, as required by law.

Credit information (Credit Report) and credit scoring (Credit Scoring) are used in three main areas. For financial institutions (Risk Management), financial institutions use credit information to assess the risk of lending.

Credit information is just one of many factors in considering loans, managing overall risk and preventing non-performing loans (NPLs). It helps determine appropriate loan terms, such as setting credit limits, to demonstrate social responsibility in preventing customers from over-indebtedness. It also helps determine appropriate interest rates (Risk-based pricing – RBP), a concept that ensures people with good credit get low interest rates. However, to reach that point, data readiness and a culture of trust must first be built.

"Risk-Based Pricing (RBP) is a good idea, and many countries around the world are implementing it. But before we can get there, we need to prepare. One area of ​​preparation is credit data, credit scores, and a culture that values ​​creditworthiness. We need to create this before we can move towards RBP. That means people with good credit will get lower interest rates. People with less-than-stellar credit, who may be at higher risk, will get higher interest rates."

At the same time, data owners have the right to request verification of their own information, as credit information is an important tool for financial management. It helps them understand their financial status and can be used for financial and debt planning, increasing their chances of accessing appropriate credit. It can also be used to verify accuracy and prevent identity theft.

"There are some shocking cases each year where people check their credit reports and discover they have unauthorized loans. They've never even heard of this financial institution before, and have never even visited it. So, why does this loan account suddenly appear on their report? This is a sign of fraud. We've encountered numerous cases this year, so if you have the chance, you should definitely check."

Dr. Lasamon added that For economic monitoring and policy determination (Statistics Data) NCB uses anonymized statistical data as a surveillance tool. Statistical data is used by government agencies such as the Bank of Thailand, the Ministry of Finance, and the National Economic and Social Development Board (NESDB) to design economic policy and serve as early warning signals. Educational and research institutions use it for in-depth analysis and dissemination to the public, such as the NESDB's social situation report on household debt.

The right to correct information is also granted in the case of debt repayment with an AMC. The data owner has the right to request correction of inaccurate information or request to update the information to be current. One important special case is when the debtor has completed the debt repayment with the Asset Management Company (AMC). When a financial institution that is a member of the NCB transfers or sells the debt to the AMC, the account status information will be identified with the code 42. When the debtor has completed the debt repayment and closed the account with the AMC, the debtor can submit a request to change the account status code from 42 to 43 at the NCB themselves.

“The debtor must submit the application himself, as the AMC is not a member of the NCB and therefore has no obligation to submit the information to the NCB.”

The NCB database is a large and important source of information reflecting the overall economic and financial situation of the country. The NCB has a total database of over 150.78 million accounts. Consumer data comprises approximately 146.10 million accounts, covering approximately 35.81 million people. The NCB covers 91% of the age range eligible for loans (20–60 years).

from analysis “Mountain of Debt” หรือ Household Debt Mountain It provides an overview of debt in terms of value and number of accounts. In terms of value or amount, home debt is the highest value debt and is mostly in the working age group (Gen Y).

In terms of the number of accounts, it was found that Personal loans are the most heavily owed debt. This is especially true for those who are just starting to incur debt, aged 20 and above, and who still face significant personal loan debt when they retire.

In terms of debt quality, it's worth watching out for. Although the overall picture shows most people in the non-delinquent (green) group, in-depth analysis reveals that those in the "green" group are hidden by those with high debt burdens or only small debt payments, which poses a risk. Products that require special attention include Nano Finance (Nano Loan): which has a relatively high proportion of non-performing loans (NPLs).

“Automotive loans are a sector whose graph has shown a clear downward trend in recent times. This is concerning, as vehicles are the means of livelihood for more than half of the population.”

In addition to spatial debt data, spatial analysis revealed that the highest economic activity and debt values ​​were in Bangkok. However, the research conclusion indicated that the provinces had a higher proportion of debtors who were beginning to have debt problems than Bangkok. This information is therefore crucial for designing policies to assist at the local level.

In terms of legal entity and SME data, although legal entity data covers only 0.35 million legal entities, the NCB database contains SME accounts that account for over 70% of all legal entity accounts. Considering debt quality post-COVID, large companies' NPL problems have decreased. However, for small and medium-sized enterprises (Micro SMEs), the NPL curve has become steeper, indicating that small SMEs are experiencing difficulties in repaying their debts.

NCB is focusing on increasing the granularity of credit data, as the more granular the data, the easier it is for financial institutions to make lending decisions, as they gain a clearer view of people's financial status. This increase in granularity could include adding special codes to indicate whether a hardship is due to a crisis (such as the COVID crisis).

The ultimate goal is to use this data to create a clear credit identity, foster a culture where people value having good credit, leading to financial wellbeing and access to affordable credit.

“The NCB is therefore more than just a data center. It is also a crucial tool for unraveling the mysteries of what's happening in the country, supporting policymakers in addressing debt issues and providing targeted and effective support to people.”

Slides accompanying the lecture on the topic “Cracking the NCB Code: From Data to Opportunity”

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