BBL predicts digital normal
90% of transactions on apps within 3 years
Bangkok Bank (BBL) expects most basic banking transactions to be made over the digital channel within the next three years.
With the online banking boom, 90% of the bank’s basic transactions, including fund transfers and payments, are expected to be done through mobile apps within that period, said Prassanee Ouiyamaphan, executive vice-president of BBL.
BBL’s digital banking transactions recorded growth of 130% after transaction fees were waived in late March. Such transactions represent 60% of BBL’s total.
Transactions via the bank’s brickand-mortar branches fell by about 10% after digital banking transaction fees were scrapped.
Even though growth of transactions via ATMs remains flat, money transfers and bill payments through this channel experienced a sharp decline.
“As more people go cashless, ATM transactions are expected to fall and the number of terminals will exceed the saturation point soon,” Mrs Prassanee said.
The bank found that 3-4% of the bank’s cash transactions have been replaced by QR code, suggesting that the payment channel is gaining ground.
Earlier, cash payment dominated at 85%, with card payments making up the rest.
Mrs Prassanee said banks have talked to the Bank of Thailand about cutting existing offers for cash and cheque transactions in a move to discourage customers from using traditional payments.
For instance, banks might reduce the frequency of free money withdrawal transactions via ATM from five times per month.
The talks have not reached any conclusion yet.
Consumers have become more familiar with digital banking transactions because of low cost, convenience and security, Mrs Prassanee said, and BBL will spend more time promoting nationwide usage of online banking.
BBL, the country’s second-largest lender by assets, aims for 7 million users on its mobile banking app, Bualuang mBanking, by year-end, and 10-11 million next year.
The bank’s various innovative services, which are undergoing testing in the central bank’s regulatory sandbox, are expected to be rolled out next year, Mrs Prassanee said, adding that the services include digital deposits, account opening and lending.
The bank’s digital roadmap will facilitate customer base expansion for both the business and consumer segments.
New deposit clients are targeted to increase by 100,000 next year through digital deposits and account opening, using electronic Know Your Customer, which is being tested out in the central bank’s regulatory sandbox.
“To support positive growth of digital
services next year, we plan to form triple teams with staff from IT, innovative digital services and customer experience design,” Mrs Prassanee said.
The bank is also encouraging potential business partners to become banking agents, a channel that will give the bank better access to customers in remote areas.
Reputation, digital process and strong compliance are the main criteria the bank is underscoring in its search for potential banking agents.
Deposits and money withdrawals are key services to be offered by the bank’s agents.
BBL shares closed Friday on the Stock Exchange of Thailand at 208 baht, up two baht, in trade worth 771 million baht.