Foreign operations, digital service KBank’s new focus

Kasikornbank (KBank) will shift more towards information technology, life insurance and foreign banking operations to tap the trend in digital banking including e-payments.

These three areas will become stronger in the next three years, said Banthoon Lamsam, chief executive of the country’s fourth-largest commercial lender by assets.

Recent changes in the bank’s top executives and a restructuring to direct holding in Muang Thai Group Holding, a major shareholder in Muang Thai Life Assurance, are part of KBank’s strategic plan.

KBank recently set up a new subsidiary, Kasikorn Business-Technology Group, with president Teeranun Srihong taking charge following higher demand for digital banking services in all segments — corporate, small and medium-sized enterprises and individual customers.

The bank has 7 million digital service users, with transactions totalling 10.7 trillion baht, accounting for a 54% market share in the first nine months of last year. It commands a 37% share in terms of number of digital banking users.

KBank has appointed Sara Lamsam, president and chief executive of Muang Thai Life Assurance, as a non-executive director and established a world business division to oversee its international banking operations.

Mr Banthoon said KBank would seek local banking licences from the Chinese government this year. It already has branches in Shenzhen and Chengdu, plus representative offices in Shanghai, Beijing and Kunming.

Meanwhile, Ronadol Numnonda, the Bank of Thailand’s assistant governor for supervision, said despite China’s economic slowdown, there were no signs pointing to financial problems by Thai commercial banks with operations there.

“There is no concern about Thai businesses operating in China, but close monitoring will continue,” he said.

KBANK shares closed yesterday on the Stock Exchange of Thailand at 159.50 baht, down 3.50 baht, in heavy trade worth 1.98 billion baht.