BBL sees need for new branches
Even though fintech companies are disrupting the traditional services that banks offer, often causing physical branches to close, Bangkok Bank (BBL) is going ahead with opening new branches to meet its customer demand.
The bank is on course to open new branches as planned but the number is not significant, said Deja Tulananda, vice-executive chairman. Bangkok Bank also does not expect to close any existing branches.
Brick-and-mortar branches are still wanted by some customers, such as those who live i n the provinces and are not accustomed to digital services, he said. Lowincome earners who do not have smartphones have also been slow to embrace digital banking services.
Bangkok Bank, the countr y’s largest lender by assets, plans to open one more branch this month. It has 1,163 branches now and had 1,157 at the end of last year.
Central bank data reported commercial banks’ physical branches fell to 6,980 at the end of February from 7,016 at the end of 2016. Kasikornbank (KBank), the country’s fourth-largest lender by assets, saw the biggest drop. The number of KBank branches fell by 17 to 1,093, followed by Thanachart Bank, the country’s fifth-largest bank, which saw a decline of 16 to 577.
Bangkok Bank is also advancing its digital banking platform to keep pace with rivals and fintech firms, setting a budget of billions of baht for IT investment for the next several years, said Mr Deja.
It will take some time for the local banking industry to become fully digitised, he said. Consumer knowledge and regulations are the key catalysts for a digital transformation, said Mr Deja.
“Regulations concerning digital business should be improved to protect consumers and related parties from cyberattacks,” he said.
Bangkok Bank has gradually transformed its security system to ensure prevent hacking, Mr Deja said.
The government’s national e-payment scheme, particularly the PromptPay service, will lower fee-based income for the sector but its impact will be limited in the long run as lower operating costs and other fee income should offset the loss.