The Business Service Model of Digital Personal Loans in Thailand

Abstract

The study on the business service model of digital personal loans in Thailand aimed to study the model of digital personal loan business, standards, and regulations of the Bank of Thailand and the current digital personal loan business market. This is qualitative research that collected data from research papers and related materials, such as books, theses, websites, and related academic documents. The findings revealed that the factors affecting changes in the personal loan business of the service providers are changes in information technology and consumer behavior. As a result, entrepreneurs needed to change traditional personal loan services that relied on only documents to prove income to the new form of personal loan services that rely on information technology to provide services, such as big data analytics, alternative data, and artificial intelligence (AI) and the mobile application for digital personal loan service. Digital personal loan service today is still in the initial stage. Therefore, the Bank of Thailand needs to set standards and regulations as guidelines for the service providers to comply. However, the digital personal loan service of the service providers still relies on the traditional way of personal loan consideration along with modern information technology so the service providers have limitations in reaching new customers or people who do not have full-time jobs or retail traders cannot access personal loan services.