KBank has selected Databricks, a leading data and artificial intelligence (AI) company, to accelerate AI and data innovations to improve business efficiency and performance through credit risk management technology.

Dr. Teerawat Asavaphokee, Executive Vice President of the Data Intelligence and IT Integration Division at Kasikornbank, said, "Kasikornbank's use of data and AI is about applying innovation to real-world use cases to drive business results. Our collaboration with Databricks allows us to leverage data analytics and predictive AI to reduce credit and fraud risk, enhance debt collection practices, and offer customized solutions for each customer, helping them achieve financial stability. We have also enhanced the skills development of over 6,000 employees, leading to over 600 applications of GenAI to enhance operational efficiency across the organization."

Cecily Ng, Vice President and General Manager, ASEAN and China, Databricks, added: “We are proud to support KBank in its transformation journey with data and AI. Data centralization and the widespread application of AI not only enhances debt collection efficiency, but also redefines how financial institutions can use data to build trust and deliver value to customers! This collaboration reflects the visionary organizations in ASEAN who are ready to leverage the power of data and AI to drive positive business impact and deliver valuable results for customers.

Kasikornbank (KBank) has implemented the Databricks Data Intelligence platform to enhance the bank's data analytics and AI capabilities, improving efficiency and business performance through credit risk management technology. Additionally, the bank has optimized its data-driven and AI-powered debt collection system for both secured and unsecured personal loans, leveraging data and AI technologies. For example, it has implemented a 'best-time-to-contact' model and customer risk stratification using collection risk scores to tailor the timing and method of customer contact. This collaboration has enabled Kasikornbank Public Company Limited (KBank) to enhance business efficiency, increase customer engagement, reduce credit risk, and provide more tailored financial solutions.

With a customer base of over 20 million, Kasikornbank Public Company Limited (KBank) faces increasing challenges in debt collection. These include outdated contact channels, a lack of insights into the optimal time to contact customers, and incomplete or inaccurate contact location data, which impacts on-site collection efforts. These challenges lead to low customer success rates, higher delinquency rates, and increased loan loss reserves. To address these issues, Kasikornbank Public Company Limited (KBank) implemented the Databricks Data Intelligence platform, which centralizes data from various sources to generate insights, supplemented by AI. The bank has initiated several initiatives that transformed customer engagement and risk management, resulting in billions of baht in loan loss reserve losses. These initiatives include:

Identify the Best Customer Contact Phone Numbers, Times, and Locations: KBank analyzes data collected from various sources, including phone records, mobile transactions, and location data, to develop AI models that identify reliable phone numbers, the most appropriate time to contact customers, and the most accurate contact location. This results in higher success rates, reduced unsuccessful contacts, and increased efficiency and cost-effectiveness in customer contact resources, especially during field visits.

Customer Risk Assessment, Personalization, and Appropriate Measures: KBank has developed an AI model that integrates loan application history, repayment behavior, and customer income and debt levels to measure customer risk levels (risk personas). This detailed segmentation allows KBank to thoroughly assess the financial distress and specific risk factors of each customer group, ranging from small businesses to retail customers. By tailoring the model to each customer's specific profile, KBank can offer appropriate financial solutions, promote financial inclusion, and better assess fair lending practices.

Real-Time Monitoring and Feedback System: KBank has also created a dashboard to monitor and assess Key Performance Indicators (KPIs) at multiple levels in real time. This enables real-time monitoring, alerts, and notifications for timely strategy adjustments, ensuring the most accurate and efficient debt collection efforts.

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