BANKING ON REVAMP
Programme includes business shake-up
SCB is making a serious push in its transformation programme, aimed at increasing its competitiveness.
Siam Commercial Bank (SCB) is making strides in its transformation programme, designed to strengthen the bank’s business potential and competitive edge, after slow initial progress.
“It is necessary to make a serious push to achieve the first phase of SCB Transformation, scheduled to be completed at the end of this year,” said Arthid Nanthawithaya, president and chief executive.
The country’s third-largest lender by assets kicked off SCB Transformation running through 2020 in April last year to sharpen its competitiveness in the face of rapid change in the global business environment following the rise of financial technology.
The first phase of SCB Transformation is aimed at improving the bank’s service quality by reducing customer complaints and increasing the number of new customers in each business unit.
Organisational restructuring to modernise the business operation is also part of the bank’s transformation programme and management restructuring is on the cards after the recent shake-up in top executive positions. Mr Arthid became SCB president on July 1 when Yol Phokasub resigned, adding chief executive to his title.
The bank has adopted a partnership model to strengthen weak areas and has set up a unit tasked with seeking potential partners for these business units, Mr Arthid said.
SCB signed a long-term contract with Microsoft to collaborate on developing the bank’s operating system. It appointed Accenture, a global management consulting, technology services and outsourcing company, as adviser overseeing the bank’s big data platform.
Despite its move towards partnerships and technology development, the bank has no plan to downsize its organisation or cut staff. However, human resources must be improved to prepare for the industry’s greater competition, he said.
For instance, SCB is set to compete for a market share of PromptPay, the money transfer and payment service via the digital channel under the government’s e-payment scheme.
“We’re aiming for a 16-17% market share of PromptPay. Amid the stiff competition, we don’t think any of the big four players will be able to grab a 20% slice of the market,” he said, adding that SCB alone has around 14 million deposit accounts.
Under PromptPay, users can easily and rapidly transfer money online to recipients who hold accounts at different banks, or even the same banks in cross-clearing zones, free of charge. To be eligible to use the service, people are required to link their savings or current account to their ID card or mobile phone.
Transactions of up to 5,000 baht are free; 5,000-30,000 baht transfers are charged a fee of no more than two baht; 30,000-100,000 baht transfers cost no more than five baht; and transfers exceeding 100,000 baht are charged no more than 10 baht.
The other top three largest banks are Bangkok Bank, Krungthai Bank and Kasikornbank.
SCB shares closed Friday on the Stock Exchange of Thailand at 145 baht, unchanged, in heavy trade worth 1.27 billion baht.