The leading Thai bank reduced its expected credit loss by multiple billions in THB with its credit risk technology using the Databricks Data Intelligence Platform
Kasikornbank Public Company Limited (KBank), one of Thailand's largest financial institutions, has selected Databricks, the Data and AI company, to accelerate its data and AI innovation. The announcement was made at Databricks' Data Intelligence Day in Bangkok.
KBank has adopted the Databricks Data Intelligence Platform to power its analytics and AI initiatives, improving efficiency and bottom line with its credit risk technology. The bank implemented a data and AI-driven debt collection transformation for both retail secured and unsecured personal loans, personalizing outreach through best-time-to-contact models and customer risk segmentation using collection risk scores. This partnership is helping KBank improve its bottom line and customer engagement, reduce credit risk, and deliver more personalized financial solutions.
With over 20 million customers, KBank faced growing challenges in debt collection, including multiple, often outdated customer contact points; limited insight into the best timing to reach customers; and incomplete or inaccurate location data that hampered field collection. These challenges led to lower contact rates, higher delinquency roll rates, and ultimately increased expected credit losses.
To address these issues, KBank adopted the Databricks Data Intelligence Platform to unify data from multiple sources and power AI-driven insights. The bank introduced a series of initiatives that transformed the way it engages customers and manages risk, and successfully reduced its expected credit loss by multiple billions in THB:
- Best number, time, and location to contact customers: By analyzing diverse data points from call logs and mobile banking usage to location data, KBank developed AI models to identify the most reliable contact number, optimal time to contact, and precise location for field visits. These initiatives have improved contact accuracy, reduced failed attempts, and optimized outreach resources.
- Customer risk scores, persona identification and optimized action matching: KBank created and rolled out AI models incorporating customers' loan profiles, payment behaviors, and income and debt levels to access customers' risk personas. This in-depth segmentation allows KBank to account for the unique financial needs and risk factors of diverse customer groups, from small businesses to individual consumers. By fine-tuning models to fit specific customer profiles, KBank offers more tailored financial solutions, increases financial inclusion, and provides fairer credit assessments.
- Monitoring and feedback loops: KBank also built real-time dashboards to continually monitor and evaluate key performance metrics at multiple levels. They enable continuous monitoring, prompt feedback, and timely corrective actions to ensure that collection activities are effective and targeted.
Dr. Tiravat Assavapokee, Executive Vice President of KBank's Data Intelligence and IT Integration Division, said, "Data and AI at KBank is about applying innovation in practical use cases for business impact. Working with Databricks allows us to leverage data analytics and predictive AI to reduce credit and risk fraud and improve debt collection, enabling us to offer more personalized and optimized options that help our customers achieve financial stability. We have also upskilled over 6,000 employees, resulting in more than 600 GenAI use cases to improve productivity across the bank."
Cecily Ng, Vice President & General Manager, ASEAN and Greater China at Databricks, added, "We are proud to support KBank in its data and AI transformation journey. By unifying data and applying AI at scale, KBank is not only optimizing collections but also reimagining how financial institutions can use data to build trust and deliver value to customers. This collaboration reflects how forward-thinking organizations in ASEAN are harnessing the power of data and AI to drive both business impact and positive customer outcomes."
About KBank
KASIKORNBANK (KBank) is one of Thailand's leading financial institutions, offering a wide range of banking and financial services to individuals and businesses. With a strong focus on innovation, KBank leverages data and technology to deliver customer-centric solutions that enhance financial inclusion and support sustainable growth.
About Databricks
Databricks is the Data and AI company. More than 20,000 organizations worldwide — including Block, Comcast, Conde Nast, Rivian, Shell and over 60% of the Fortune 500 — rely on the Databricks Data Intelligence Platform to take control of their data and put it to work with AI. Databricks is headquartered in San Francisco, with offices around the globe and was founded by the original creators of Lakehouse, Apache Spark(TM), Delta Lake, MLflow, and Unity Catalog. To learn more, follow Databricks on X, LinkedIn and Facebook.
