SCB partnership unit aims to support digital demand
Siam Commercial Bank (SCB) has set up a business partnership unit to build a network that will enable it to meet customer demand for digital banking.
The new unit works across the bank’s business segments including corporate, small and medium-sized enterprise and retail banking.
The digital trend is changing the banking business rapidly, said chief executive Arthid Nanthawithaya, adding that the bank thus needs to change its mindset to maintain competitiveness and profitability.
The new business unit focuses on a partnership strategy as a shortcut to improving and expanding its servicing areas to customers rather than building up every service on its own.
The bank’s retail customer base is around 14 million accounts, which it aims to increase by 1 million a year over the next several years.
“We are collaborating with business partners in promotional campaigns. Customer information will be entered into the data analysis system as we want to know, in depth, their requirements and respond to demand immediately,” said Mr Arthid. He add that the clients of partners will receive benefits from the bank under the barter concept.
SCB, the country’s third largest lender by assets, last year invested 1 billion baht in establishing infrastructure to facilitate change in the digital age. It has allotted another 40 billion baht for IT investment over the next three years.
“The digital trend brings opportunities and challenges for the banking industry. We have to adapt well in order to make the most of it,” said Mr Arthid.
The new national PromptPay scheme has caused a decline in the bank’s fee-based income, which represents 35% of its total revenue. The bank therefore views adjusting itself rapidly to keep up with changing technology and consumer requirements vital to maintaining profitability in the long run.
Separately, first executive vice-president Arak Sutivong said there are around 2.5 million customers registering for the PromptPay service with SCB. It aims to increase that number to 4-5 million by the end of the year.
There are currently 24 million registered PromptPay accounts.