Government Savings Bank-SAWAD to Challenge the Auto-Title Loans Business
Government Savings Bank-SAWAD: to Challenge the Auto Title Loans Business
Government Savings Bank-SAWAD: to Challenge the Auto Title Loans Business
24 พ.ย. 2563

After looking for a new business partner for a while, finally Government Savings Bank (GSB) has advanced into a joint investment with Srisawad Corporation Public Company Limited (SAWAD) in Fast Money Co., Ltd. (FM), SAWAD‘s wholly owned subsidiary, in order to operate the business of auto title loans. GSB will hold no more than 49% of the total shares in FM, while SAWAD will hold not less than 49%.
 
The deal that will completely change the business of auto title loans..!!
 
As of now, the car title loans market was valued at one hundred billion baht, accounting to 21% of non bank lendings’ market value of 4.81 hundred billion baht.   
 
New partnership between GSB and SAWAD is openly challenging the largest vehicle title loans provider Muangthai Capital Public Company Limited (MTC) and the rumor has said that tycoon Chuchat Petaumpai is preparing to launch a fresh interest measures. Well,…to be continued.  
 
It also fuelled other loan services providers including “Somwang Ngern Sang Dai” of Tisco Bank, Amanah Leasing Public Company Limited (AMANAH), “Krungsri Auto” of Bank of Ayudhya and “Pee Berm” of Krungthai Card Public Company Limited (KTC) to change their strategies right away.
 
As Fast Money Co., Ltd. (FM) is set to offer auto-title loans at a low interest of 18%, it is expected to attract other banks’ clients to refinance a mortgage, therefore there would be intense competition to snatch customers. Maybe the war of interest is coming..!!
 
SAWAD gained 1,300 million baht soon after disposing of 49% stake in Fast Money to GSB, increasing Fast Money’s capital without cost.
 
In addition, for SAWAD, the partnership with GSB will minimize the Company’s financing cost as it is forecasted that GSB would offer a low interest of 2% to SAWAD, and would protect the Company from NPL. 
 
On the other hand, SAWAD would lose its partial profit in Fast Money as GSB will get a slice of cake. In 2017, Fast Money had a profit of 47 million baht, increased to 338 million baht a year later, and jumped to 679 million baht in 2019.