Bangkok Bank to open 20 branches
Bangkok Bank (BBL), the country’s largest bank by assets, is bucking the industry-wide trend of downsizing branch networks as it plans to open 20 more branches this year.
This kind of service remains highly sought after by customers in certain areas, said BBL executive vice-president Thaweelap Rittapirom. The bank is now reviewing its service model to keep pace with the changing lifestyles and financial behaviour of its customers, he said.
Some of the bank’s branches are changing their target customers from individuals to small and medium-sized enterprises (SMEs), he said.
In other geographical areas, clients have shown a preference for making electronic payments so the bank must adjust to better serve their needs, he added.
The bank’s move to expand its branches and ATM machines aligns with the rate of urbanisation, Mr Thaweelap said.
“A physical branch is a key channel for building a connection with a new customer base, as well as a way of maintaining that relationship with new products and an expanded service. As such, it’s still necessary for our business despite the growing trend of digital banking,” he said.
According to Bank of Thailand data, BBL added seven new branches from January to April, taking its total to 1,164 nationwide.
But many banks shuttered branches over the same period, with 66 closed to leave 6,950 still operating by the start of May, the same data showed.
Krungthai Bank, which has the largest network, also saw the biggest drop. It closed 27 branches to leave it with 1,186. Kasikornbank (KBank) was next, shutting down 26 for a new total of 1,084, followed by Thanachart Bank, the country’s fifth-largest, which lost 26 branches leaving it with 567.
Brick-and-mortar branches have been falling like dominos as tech-savvy millennials increasingly ditch them in favour of faster internet or mobile phone banking services.
Even though banking transactions at traditional branches are set to decline further, some locations like shopping malls are still showing positive growth.
Mr Thaweelap said BBL is continuing to develop its digital banking services to facilitate new groups of customers.
Meanwhile, Bangkok Bank InnoHub, BBL’s startup accelerator programme, said it is searching for new startups to join the bank and adopt innovative financial products and services.
BBL shares closed yesterday on the Stock Exchange of Thailand at 180 baht, unchanged, in trade worth 840 million baht.