Bank of Thailand moves to revive SME lending after a four-year slide: credit portal, alternative data and a 100 billion baht guarantee target

Thailand's small and medium-sized businesses employ most of the country's workforce, yet bank lending to them has fallen for four consecutive years. On 8 October the Bank of Thailand set out a plan to reverse that trend. Speaking at the Thailand Economic Outlook 2027 forum, Governor Vitai Ratanakorn outlined a package that combines a new digital credit portal, the use of alternative data in credit decisions, free credit bureau checks for individuals and a five-year credit guarantee scheme, according to reporting by The Nation cited by Fintech News Singapore.

The measures target the two reasons small firms struggle to borrow. Lenders cannot easily assess borrowers who lack formal records, and they hesitate to take on the risk of lending to firms with thin collateral. The package tries to fix the information problem with data and the risk problem with guarantees. Its success will decide whether credit flows again to the shops, suppliers, freelancers and online sellers that make up much of the Thai economy.

The SME Credit Portal launching in December

The first measure is an SME Credit Portal, with an initial launch scheduled for December 2026. The portal is designed to let borrowers connect with different financial institutions and compare financing options in one place, rather than approaching banks one at a time.

For small business owners, that addresses a practical frustration. Applying to several lenders is time-consuming, and many owners give up after one rejection without knowing that another lender might have approved them. A portal that presents several offers can make the market more competitive and help borrowers find products that fit their cash flow.

For lenders, the portal is a new distribution channel. Banks, specialised lenders and, potentially, the virtual banks preparing to launch in Thailand will compete for applications in the same place. That competition could narrow interest rate spreads for creditworthy borrowers, while making it harder for lenders to rely on existing relationships alone.

The detail of the portal's design will matter. How borrower data is shared, which lenders can participate, and whether applications on the portal count against a borrower's credit file are the questions banks and fintechs will be asking as the December launch approaches.

An alternative data exchange for thin-file borrowers

The second measure is an alternative data exchange, which would let lenders assess borrowers using transaction histories, utility payments and government records. The central bank's aim is to help freelancers and online sellers demonstrate their ability to repay without regular payslips.

That is a significant shift for a lending system built around salaried employees and collateral. Thailand's economy includes millions of people who earn income irregularly, from market traders and delivery riders to sellers on e-commerce platforms. Many have years of reliable payment behaviour recorded in mobile wallets, utility accounts and marketplace sales, but none of it appears in traditional credit files.

Fintech lenders and digital banks have argued for years that such data can predict repayment as well as, or better than, conventional records. An official exchange gives every lender access to it on consistent terms, which could help banks catch up with the specialists. Our report on how virtual banks plan to serve underserved Thais explains why alternative data sits at the centre of their business models.

Privacy and consent will be the sensitive points. Borrowers will need to understand what data is shared, with whom and for what purpose, and Thailand's personal data protection law sets the boundaries. A clear consent model will determine whether the exchange earns public trust.

Thailand's lending system was built for salaried employees with collateral. The new plan tries to make it work for freelancers and online sellers.

Free credit checks and a longer-term guarantee

The third measure would let individuals check their credit bureau records twice a year at no cost, with implementation expected within two to three months. Free access lets borrowers find errors, understand why they were rejected and improve their standing before applying, which tends to improve outcomes for borrowers and lenders alike.

The fourth is about risk sharing. The central bank described a five-year credit guarantee scheme that shares lending risk, funded by redirecting commercial banks' contributions to the Financial Institutions Development Fund. The target is about 100 billion baht in new SME lending each year through the scheme. Separately, the existing Credit Boost programme would become a longer-term loan guarantee mechanism in early 2027.

Guarantees work by reducing the loss a lender suffers if a borrower defaults. With part of the risk covered, banks can lend to firms they would otherwise reject. The design question is always how much risk to cover. Too little and banks will not change behaviour, too much and they may lend carelessly because someone else bears the loss.

• SME Credit Portal: initial launch in December 2026.
• Alternative data exchange: transaction, utility and government records for credit decisions.
• Free credit bureau checks: twice a year, expected within two to three months.
• Five-year guarantee scheme: funded by redirected bank contributions, targeting about 100 billion baht a year.
• Credit Boost: becomes a longer-term guarantee mechanism in early 2027.

Why SME credit dried up

The reasons behind the four-year decline are familiar across the region. After the pandemic, many small firms carried heavy debts, and banks grew cautious as non-performing loans rose. Household debt in Thailand is among the highest in Asia relative to the economy, which makes lenders wary of borrowers whose personal and business finances overlap.

Higher interest rates globally added to the pressure, raising funding costs and making lenders more selective. Small firms with uneven cash flow and limited collateral were the first to feel the squeeze, while large companies with access to bond markets and established banking relationships continued to borrow.

The result is a gap that hurts growth. Small firms that cannot borrow cannot invest in equipment, stock or digital tools, and some turn to informal lenders charging far higher rates. Reviving formal SME credit is as much about financial inclusion as it is about economic growth.

What it means for banks, fintechs and virtual banks

For Thailand's large banks, the measures create both opportunity and pressure. Guarantees reduce the risk of lending to SMEs, but the portal and the alternative data exchange will make the market more transparent and competitive. Banks that move quickly to use the new data and offer competitive products could gain share.

For fintech lenders, the alternative data exchange may narrow their advantage, since banks will gain access to similar information. But fintechs remain faster at building digital lending products and serving small borrowers efficiently, and the portal gives them a channel to reach customers who might never have found them otherwise.

For the virtual banks preparing to launch, the timing could hardly be better. They were licensed to serve underserved customers, including small businesses, and the central bank is now building infrastructure that supports exactly that mission. We explained the licensing background in our guide to Thailand's first virtual bank launch.

What to watch as the plan rolls out

The December launch of the SME Credit Portal will be the first test. Watch which institutions sign up, how easy it is for small firms to use, and whether early data shows more applications turning into approved loans.

Next, the rules for the alternative data exchange will define its impact. The range of data sources, the consent process and the access rules for lenders will determine whether it changes credit decisions at scale or remains a pilot.

Finally, the guarantee scheme's terms will matter most for volume. The 100 billion baht annual target gives a benchmark against which the plan can be measured. If new SME lending approaches that figure within a year, the central bank's package will have done its job.

The Bank of Thailand's plan tackles SME credit from both sides: better information through a portal and alternative data, and shared risk through guarantees. If it works, it could reopen formal credit to the freelancers, online sellers and small firms that four years of tightening left behind, and give virtual banks and fintech lenders the infrastructure they need. The December portal launch and the guarantee scheme's first-year numbers will show whether the plan delivers.