Thailand Moves to Revive SME Lending After Four-Year Decline

The BOT's proposed Alternative Data Exchange aims to broaden credit assessment beyond traditional payslips. By incorporating transaction histories, utility payments, and government records, it could enable a wider range of borrowers, such as freelancers and online sellers, to demonstrate creditworthiness. This approach recognizes that the nature of work is changing and that traditional financial documentation may not capture the full picture of an individual's or small business's financial health.

The planned SME Credit Portal, set for an initial launch in December 2026, intends to streamline the loan application process by connecting businesses with various financial institutions. This digital platform could reduce the friction often associated with finding and applying for suitable financing options, potentially improving efficiency for both borrowers and lenders.

A key component of the BOT's strategy is the expansion of its Credit Boost programme into a five-year loan guarantee scheme, aiming to generate 100 billion baht in new SME lending annually starting in early 2027. By sharing lending risks using funds from commercial banks’ contributions to the Financial Institutions Development Fund, the central bank seeks to incentivize lenders to extend credit to SMEs, which are often perceived as higher risk.

These measures collectively indicate a shift towards leveraging digital infrastructure and alternative data to address systemic issues in SME financing. The focus on both demand-side access through the portal and supply-side risk mitigation via the guarantee scheme suggests a comprehensive effort to revive a critical segment of the Thai economy.