Innovation and Technology Management

The Company has established an innovation and technology management framework covering the responsible use of technology, data protection and cybersecurity, information system governance, and the promotion of innovation development. This framework is integrated into the corporate strategy, risk management, and internal control systems to ensure that technology adoption yields maximum benefits without creating negative impacts. We aim for the following outcomes:

1. Reduce paper consumption in operations by increasingly applying technology.
2. Develop applications and internal management systems to comprehensively cover internal administration, serving as efficient tools for public relations, data dissemination, data storage, and information retrieval.
3. Disclose data management innovations regarding job application channels, investor access, and the promotion of social and environmental engagement, as well as the improvement of social well-being through online media.
4. Sort, separate, and dispose of waste, deteriorated equipment, and obsolete assets to ensure they are destroyed appropriately.
5. Disclose information on electronic lending innovations (Digital Lending) and the use of Artificial Intelligence (AI) for Credit Scoring to ensure appropriate loan granting.
6. Conduct surveys on customer needs and employee satisfaction to adapt business strategies and contribute to social and environmental development.

The Company has set innovation and technology goals to reduce paper and ink consumption in core work processes through the use of E-Forms and Document Management Systems (DMS). Furthermore, there must be no data leaks or damages from information system threats (Zero Data Breach Incident) originating from the newly developed systems.

1. Establish and review Information Systems and Data Communication Network Usage Policy¹, taking into account ethics, privacy, and personal data protection.
2. Implement measures according to the Cybersecurity Policy² to govern and manage cybersecurity threat risks.
3. Develop and maintain information systems to ensure they are accurate, reliable, highly available, and supportive of business decision-making.
4. Promote the adoption of innovation and digital technology to enhance the efficiency of work processes, products, and services.
5. Continuously build knowledge and awareness regarding technology and cybersecurity among employees.
6. Assess and monitor technological risks to improve systems and measures in alignment with changing circumstances.

1. The Company reviewed the policy on the use of information systems and data communication networks, as well as the cybersecurity policy, to ensure they remain appropriate and aligned with business strategies and changing technologies.
2. Strictly monitored and prevented cyber threats by installing external cyber threat detection and tracking systems, resulting in zero cases of customer data leakage or system disruption from cyber threats (0 cases).
3. Developed information systems to support business operations, including the core loan system to accommodate new loan products and the insurance sales support system. These systems facilitate customers, reduce employee workflows, and support off-site loan offerings (Delivery). For every newly developed system, related operational manuals are created or updated, and employees are trained to ensure understanding during the system testing phase. Communication and Q&A sessions are also conducted to build comprehension both before and during actual usage. Additionally, the aforementioned systems can generate data reports to effectively assist management in decision-making.

4. Developed internal systems to reduce credit risks beyond the core lending system, which include:

   1. Branch Audit System Designed to replace paper checklists. It can report audit data by branch managers across various aspects, allowing for the attachment of photos to support the inspection.
   2. Public Relations Media System Enables branch employees to utilize internal management system data for sales and marketing communication, such as advertising signs and spots. Furthermore, photos and videos from internal and external company activities are stored to be published across various media channels.
   3. Electronic Form System (E-Forms) Categorizes and stores various internal forms and documents with security based on user access rights, facilitating easy data retrieval. Examples include Power of Attorney documents and credit approval request forms.
5. Required all employees to read and complete knowledge assessments on cybersecurity, cybersecurity operating procedures, data classification levels in IT systems, and policies regarding the use of information systems and data communication networks. This ensures employees are aware of the importance of information system security. As a result, 100% of employees passed the training and knowledge assessment on the policy for the use of information systems and data communication networks.

The Company is deeply committed to Responsible Lending and the development of innovations that minimize environmental impacts. Recognizing that the transition to a low-carbon economy and the adoption of clean energy are vital for sustainable development, we prioritize the continuous enhancement of our green products and services. As a leading financial provider for the agricultural sector and retail customers, the Company actively supports financial inclusion, enabling our clients to access clean energy and eco-friendly technologies. This not only builds long-term economic resilience for our customers but also directly mitigates the impacts of climate change.

The Company integrate green product development directly into the Company’s corporate sustainability strategy and Enterprise Risk Management (ERM) framework. Our approach ensures that loan products match the debt-service capacity of our clients while financing credible, environmentally sound technologies. To balance financial and environmental risks, our operational strategies include:

1. Supply Chain & Transition Risk Management: The establishment of Saksiam Solar Energy Co., Ltd. to strictly manage the supply chain and select globally standardized technologies, mitigating transition risks associated with rapid shifts in energy technology.
2. Credit Risk Management: Designing flexible loan structures aligned with farmers' seasonal income cycles, thereby mitigating repayment risks driven by climate-induced income volatility.

Our overarching goal is to continuously expand our green loan portfolio through strategic partnerships with clean energy and agricultural technology distributors, maximizing our clients' access to sustainable solutions.

1. Strategic Partnerships: Selecting and collaborating with highly credible and standardized solar energy distributors.
2. Green Financing: Developing innovative loan conditions for solar installations (agricultural and residential) that genuinely reflect the client's financial capacity to prevent over-indebtedness. We also provide comprehensive advice on the benefits, usage, and maintenance of solar systems.
3. Digital Transformation for Sustainability: Enhancing internal lending systems and operational workflows to drastically reduce paper consumption and optimize customer responsiveness.