Consumer financing on rise with new market entry
Consumer financing on rise with new market entry
Krungsri Leasing Service Co., Ltd has started offering its consumer financing products in Laos after its official launch on Tuesday.
The grand opening of Krungsri Leasing Service was attended by Vice Governor of the Bank of Lao PDR Mr Sonxay Sithphaxay.
Krungsri is a member of Mitsubishi UFJ Financial Group (MUFG).
Krungsri Leasing Service Co., Ltd Managing Director Mr Suradej Punturaumporn said the Lao economy was continuing to grow steadily.
He said the market for leasing for consumer and business markets had further growth potential and opportunities.
Krungsri First Choice was the first financial product for Krungsri leasing company to introduce to consumers.
It will focus on offering electronic and electrical appliances initially, with other products to be offered from early next year, he said.
“This joint venture is a part of our plan to expand our presence into neighbouring countries Laos, Myanmar, and Cambodia through partnerships with local business partners to leverage our consumer financing products to potential customers in these countries,” Mr Suradej said.
Krungsri Leasing Service Co., Ltd is a joint venture between Bank of Ayudhya Public Company Limited (Krungsri) and Unity Capital Company Limited (UCC), a Vientiane-based consumer finance company that offer consumer financing products in Laos.
Krungsri hold a 70 percent stake in the joint venture with UCC holding the remaining 30 percent.
He cited the partnership with UCC as a combination of Krungsi's strength in consumer finance management and UCC's local market and consumer insights.
The deal has been officially approved by the Bank of the Lao PDR, the Bank of Thailand and other relevant authorities.
The Lao government has issued guidance to promote business sectors in various aspects, in particular the leasing sector.
Such offerings could contribute to the society, especially by allowing consumers on low and medium incomes to access financial services correctly and fairly according to the regulations, Mr Sonxay Sithphaxay said.
He explained that leasing arrangements had been seen in Laos over the preceding decade, both authorised and unauthorised.
Although leasing had contributed benefits to consumers, interest rates had been high.
He believed that greater competition would bring better service and lower interest to consumers in the near future.
“If a leasing company or organisation like ours can offer international standard services, it will promote fairer competition among leasing business operations and consumers will gain significant benefits,” Mr Sonxay said.
vientiane times
