Good Money to help GSB deliver on its social pledge

Government Savings Bank (GSB) is venturing into the personal and small business loan market through an online platform, leveraging alternative data and technology-driven solutions, with a goal of reaching 500,000 customers over the next four years.
Speaking after the launch of MoneyDD Co Ltd (‘Good Money’), GSB’s new subsidiary that will offer loans through an online platform, GSB president Vitai Ratanakorn said the initiative aims to provide unsecured loans and loans to prospective borrowers deemed to be at a higher risk than regular borrowers and riskier than those the bank would typically approve, at interest rates below those available via informal loans. Good Money will also offer nano-finance products.
He said the establishment of Good Money aligns with the bank’s social banking mission, which includes promoting financial inclusion, addressing household debt through debt restructuring, and empowering people to increase their income.
He added that GSB’s goal is not to maximise profit but to earn a reasonable profit, with a portion allocated to social initiatives, aiming to provide social loans worth 15-20 billion baht per year.
Sirinun Jiradilok, managing director of Good Money, said the online loan platform will streamline the lending process as much as possible, from customer onboarding to loan approval, allowing clients to complete all the necessary steps without having to visit a branch.
This will make it easier for consumers residing in remote areas, such as a district in Mae Hong Son, to access formal loans without having to rely on informal lending.
She noted that the Good Money platform would set a new standard in the development of financial tools, delivering an accessible and comprehensive digital lending experience.
Prospective clients can apply for and receive loan approval via the app at any time and from anywhere. The firm also places great emphasis on responsible loan approvals, providing loans based on necessity and repayment capacity. To achieve this, it employs AI and advanced technology that is fast and secure for analysing personal data and assessing the repayment ability of the applicant.
According to Ms Sirinun, the company has received two licences — one for personal loans and another for nano loans. For personal loans, the interest rate ranges from 19-25%, with a maximum loan amount of 1 million baht. Nano loans, or loans for small businesses, have an interest rate of 29-33% and the maximum loan amount is 100,000 baht.
In its first year of operations, the firm aims to build a customer base of 100,000 to 200,000. During the pilot phase, it has already acquired 5,000 clients, with loans totalling 100 million baht.
According to Mr Vitai, in assessing Good Money’s loan applicants, the firm will consider statements and alternative data, such as information concerning water and electricity usage, to aid the loan assessment process.
Good Money is a joint venture between GSB (49%) and Mee Tee Mee Ngern Co (51%), an affiliate of GSB engaged in land loans and sales on consignment, established to expand loan access for SMEs. Good Money’s has 400 million baht in registered paid-up capital.