LINE BK tops two million users in Thailand
By Amelia Chen
LINE BK, the first social banking platform in Thailand, has exceeded two million users within four months from its launch in October 2020. LINE BK registered strong growth in the number of new users, transaction volume, and loan applications.
- As many as 50,000 new savings accounts are opened on a single day
- Total number of financial transactions on the platform has surpassed THB 21 billion ($683 million)
- More than THB 5 billion (US$163 million) in outstanding loans as of late February
LINE BK integrates the services of local KBank into LINE. Users can directly transfer money, open an account, apply for a loan, or make payments online. Opening a savings account in LINE BK is equivalent to opening a KBank account and users can use all financial transaction items of bank accounts through LINE with even cash withdrawal in the form of no card on KBank’s ATM. Users can avail deposit rates of up to 1.5% per year and choose to deposit for six months or one year.
With the goal of creating synergies between KBank's digital banking leadership in Thailand and Line's 47 million digital users, Line BK offers integrated financial solutions for users without having them switch between applications or remember bank accounts. Customer interest in the offerings has resulted in over 50,000 new saving accounts opened in a single day.
Alongside the growing penetration rate of smartphones, mobile payment transactions are rapidly increasing in Thailand but there is still room for expansion as it is still early days in terms of adoption. The Thai government is focused on developing digital payments infrastructure and taking measures such as driving up card use for online payments and launching PromptPay to boost digital wallet adoption.
The total amount of financial transactions through LINE BK over the first four months has surpassed THB 21 billion ($683 million). LINE BK’s performance in the first four months after its launch shows the increasingly strong demand of Thai consumers for fully digital financial services. With Line BK's personal loan service, Line BK Credit Line, customers can apply for a personal loan and receive approval and funds available for use immediately. As of late February 2021, LINE BK has issued personal loans with an outstanding balance of over THB 5 billion ($163 million). LINE BK had more than 40,000 loan applications on a single day during peak periods, with 30% of the approved applicants never having received a loan before.
In the future, Link BK will offer more financial solutions and expand its portfolio to cover insurance and financial investment products. “We are very pleased to see how quickly LINE BK has been accepted by the Thai people,” said Young Eun Kim, chief operating officer of LINE Financial Asia and chairman of the board of directors of KASIKORN LINE. “We opened LINE BK on the principle of ‘Banking in Your Hand’, offering people greater convenience and accessibility for their main banking services. Moreover, additional benefits like cashback deals and low interest rates on loans have also helped users embrace LINE BK.”
LINE expects digital financial services to be further expanded to Indonesia, Taiwan, Japan, and other countries and regions. In fact, LINE has already established LINE Bank with Mizuho Bank in Japan and also opened LINE Bank business operations in Taiwan.
Keywords: Mobile Banking, Digital Wallet, Deposits, Loans, Online Payments