Thailand’s second-largest lender, Kasikornbank (KBank), is accelerating its adoption of artificial intelligence and adopting a more cautious lending stance to navigate weaker growth and rising fraud risks, said chief executive Kattiya Indaravijaya.

The bank expects AI to deliver “meaningful impact” on productivity within two years, though integration is still at an early stage across all units.

Ms Indaravijaya explained that the bank intends to deploy AI initially for straightforward credit-approval decisions, allowing underwriters to focus on more complex and uncertain applications.

Meanwhile, KBank has pulled back on higher-risk lending, emphasising credit to customers with established payment or credit records.

Non-performing loan ratios have improved under this strategy.

She noted that Thailand’s economy is projected to grow at less than two percent annually over the next two-to-three years and called for medium- to long-term structural reforms by the government.

The economic headwinds include U.S. tariffs on Thai exports, subdued domestic consumption, elevated household debt and a strong Thai baht that is undermining export and tourism competitiveness.

The country has already recorded a seven-percent year-on-year drop in foreign-visitor arrivals.

In response to warning signs since 2022, KBank adjusted its credit-policy framework to reflect the more challenging environment.

While the bank has been approached with merger or acquisition offers involving fintech firms, the CEO said it is not actively pursuing deals.

Any potential acquisition must align with the bank’s strategic direction and deliver value to both customers and shareholders.

By combining cautious credit underwriting with strategic technology deployment, KBank aims to position itself for resilience in a slower-growth economy while preparing for the digital-driven future of banking in Thailand.