The financial services landscape in South-East Asia continues to undergo significant transformation as digitisation by incumbent banks and new market entrants fundamentally disrupt conventional business models in response to evolving consumer behaviour and changing socio-demographics. Enter MONIX, a joint-venture fintech startup between Thailand’s SCBX and China’s Abakus Group, and its launch of the FINNIX digital lending financial platform designed to enable financial access and advance financial inclusion in Thailand.
To facilitate the 100% digital lending solution, MONIX has developed the F.I.R.E. (Finance, Intel, Reward, Empowerment) Ecosystem strategy. This strategy helps extend digitally-based nano loans to underbanked customer segments in Thailand who would otherwise be excluded from receiving financing within the traditional financial system. Built with speed, convenience, and innovation in mind, FINNIX offers nano loans in just five minutes, without the need for cumbersome paperwork, collateral, and guarantors.
MONIX’s Efficient Digital Lending Platform Resonates with Customers
Importantly, through the deployment of e-KYC, FINNIX Score, and advanced analytics capabilities, MONIX has successfully disbursed over THB 19 billion in loans while engaging with over 740,000 customers via the FINNIX platform. With a customer satisfaction rating exceeding 80% and an App Store and Google Play rating of 4.8 and 4.6, respectively, the FINNIX App has gained traction with the underbanked customer segment. Customers find value in its human-centric design and ease of use, contributing to the over 10 million app downloads.
Moreover, the entire digital lending experience for the underbanked, starting from onboarding powered by identity verification to loan disbursement, is designed with a focus on customer empowerment. Our customer journey is a super easy process, starting with e-KYC. It follows a 3-step process that does not require manual document submission. This is an opportunity for everyone, even those whose mobile phones have below-par camera performance. The platform is augmented to strengthen customer acquisition efforts through a fast and secure digital onboarding journey for new customers, while leveraging cloud services to ensure the reliability and scalability of the infrastructure supporting loan administration efforts
FINNIX Credit Report Shapes Client Experience to Drive Responsible Credit Behaviour
Likewise, the FINNIX platform has incorporated new features to better serve its targeted underbanked customer segment. The humanised FINNIX Credit Report provides an assessment of a user’s creditworthiness, examining both their ability and willingness to meet loan repayments.
In addition, a FINNIX Score is generated based on the client’s relevant personal and financial information, which helps inform financial behaviour. The platform also provides additional guidance to customers on steps for credit improvement, thereby contributing to responsible credit behaviour.
MONIX considers the FINNIX Credit Report as an essential tool for assisting borrowers in understanding their own financial health and establishing credit. It is also intended to promote greater fiscal responsibility among customers while minimising wealth disparities in the country. Furthermore, the in-app gamification helps customers build financial discipline, allowing them to maintain credit scores, which contributes to the app’s low bad debt rate.
Moreover, the streamlined loan application process, access to real-time credit performance tracking, and AI-enabled underwriting models for real-time personalised loan offers are resonating with users, while it incentivises those users with good credit behaviour. Clearly, customers have responded positively, as the percentage of digitally active users has increased by 32% YoY
Advancing Literacy and Awareness to Promote Financial Freedom
Another critical component of MONIX’s aspirational vision of creating opportunities for people to prosper and enjoy life is enhancing financial literacy across the banked and underbanked populations in Thailand. Positioned as a financial friend, MONIX aims to strategically use FINNIX to support Thais in making more prudent financial management decisions that can only come through targeted financial education and awareness initiatives. Customer understanding of scams, poor lending practices, and exploitative financing is necessary to prevent loss or harm to the lives and assets of borrowers.
A case in point is the “Debt Slave” campaign launched by FINNIX to address the burdensome costs of illegal debt that has proliferated in sections of the Thai market through a plethora of unlicensed lending apps. Drawing upon the real[1]life experiences of users who have been victims of such egregious operators, the campaign seeks to break the vicious cycle of fraudulent lending by discouraging the use of unlicensed digital apps and enabling customers to consider more regulated funding alternatives.
Likewise, the “Goo Sang, Goo Som” e-book, which offers clients practical advice and insights into the risks associated with borrowing from illegal lenders and types of financial fraud, has been downloaded more than 30,000 times. With a range of materials and resources designed to help consumers make better financial choices now available through the FINNIX platform, MONIX is facilitating unbanked customers, particularly those in lower income brackets, by providing them with much-needed perspective on how to reduce their financial pressures. Through knowledge, customers can secure their financial freedom, avoid unethical lending practices, and attain true “Empowerment” as envisaged by the F.I.R.E. Ecosystem strategy.
Thiranun “Tyra” Arunwattanakul, the Chief Operating Officer of MONIX, said, “We are dedicated to financial inclusion and ensuring accessibility in personal finance for all. Our AI-powered digital lending platform, FINNIX, prioritises a humanised customer experience, revolutionising digital lending in Thailand and driving financial inclusion. We strive to provide exceptional experiences that make our customers’
lives easier, while continually improving accessibility and convenience. As part of our commitment to holistic financial literacy, we offer sustainable solutions such as FINNIX Credit Report, jobs and deals with partners, and gamification. By incorporating these elements, we empower the underbanked, especially the 36 million Thai people, through our innovative fintech solutions.
MONIX’s Case for Expansion in 2023 and Beyond
The FINNIX platform has continued to record strong growth across the key customer engagement and retention metrics, acquiring over 740,000 consumers. MONIX is set to expand the F.I.R.E. Ecosystem strategy to include more products and services and aims to achieve a 1.5 times increase in loan growth in 2023. Their goal is to deepen their presence in the digital lending market and extend the FINNIX application to the independent professionals’ customer segment. The company strives to reach a THB 25 billion loan disbursement while collaborating with partners such as Lazada, Beneat, Thitaram, Daywork, and Divana. These collaborations aim to generate approximately 30,000 job opportunities for FINNIX customers and earn incremental revenue in both formal and informal sectors of the Thai economy.
“Our AI-powered digital lending platform, FINNIX, prioritises a humanised customer experience, revolutionising digital lending in Thailand and driving financial inclusion.”
Khun Thiranun Arunwattanakul
Chief Operating Officer (COO) of MONIX Co., Ltd
As the nascent Thai nano-finance loan segment grows by nearly 50% YoY and current loan balances have already eclipsed THB 31 billion, there is still ample room for growth. Based on the experience during the pandemic, customers prioritise digital channels. The ability to secure legal funding quickly at reasonable interest rates holds a unique appeal. Recent profiling of FINNIX loan applicants reveals that the average monthly income of a typical user is THB 10,000-20,000. Customers have the option to choose pay-as-you[1]wish plans, which offer debt repayment flexibility based on their available cashflow. Moreover, the deployed AI and machine learning algorithms have demonstrated exceptional precision in analysing customer data, mitigating credit risk, and limiting the bad debt rate.
Certainly, through its FINNIX platform and F.I.R.E. Ecosystem strategy, MONIX has unlocked new synergies in facilitating the digital delivery of nano loans to the underbanked population in Thailand. Affirming its institutional achievements, The Digital Banker has recognised MONIX Co., Ltd. for the “Best Fintech for Digital CX – Personal Finance,” “Best Digital Bank for CX,” and a Highly Acclaimed “Best Retail Bank for Digital CX in Thailand” at the recently concluded Digital CX Awards 2023.
