The FINNIX mobile app, which is regulated by the Bank of Thailand, was developed by MONIX and offers micro-finance loans through a completely digital process from loan application to approval and disbursement. The app targets Thai consumers who previously didn’t have a bank account, and it gives them an opportunity to apply for credit directly from their smartphone.
In order to improve its electronic KYC (Know Your Customer) capabilities, FINNIX tapped Singapore-based ADVANCED.AI and leveraged its eKYC solution. eKYC uses artificial intelligence (AI) technology to help FINNIX abide by regulatory biometric requirements while making it easier for Thailand’s underbanked individuals to verify their identities and obtain loans.
The verification process involves taking a selfie and creating a scan of a Thai national ID card using a smartphone.
Officials from MONIX have stated in the official press release that trust is a key factor in the fintech industry, particularly in the context of money lending. This trust goes both ways, as companies need to know who they are dispensing money to and how they are going to get it back, while users need to know that their personal information is stored securely.
Official representatives from ADVANCE.AI touched on recent improvements in artificial intelligence and emphasized how traditional customer onboarding, compliance, and credit decisioning processes can be implemented in a way that is convenient but secure for both the consumer and the financial institution.
According to macquarie.com, 45% of Thailand’s adults are underbanked and 18% are unbanked, including lower-income consumers or micro or small-medium businesses operating outside the banking system.
The same report emphasises that, while it was previously impossible to lend to unbanked consumers and businesses as they had no or limited credit history, the use of digital alternatives to mainstream financial products allows providers to build up data on users’ financial management and spending patterns over time. This information can then be used to make future product and lending decisions.
By giving people access to savings, micro-loans, and insurance products, fintechs can potentially improve the financial well-being of the population while supporting access to funding for education and training. As far as businesses are concerned, digital payments can help manage cash flows, prove creditworthiness, and bring on new customers.
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