TMB rolls out customer lures
TMB Bank plans to expand the primary customer segment by 10-15% annually over the next four years through higher deposit interest and online reward redemptions.
The bank aims to expand the number of primary customers to 2.5 million by 2022 from the existing 1.45 million, said chief retail banking officer Roel Huisman.
The bank registered a 49% increase in TMB All Free accounts and TMB No Fixed accounts from January to June, resulting in a rise of users via the digital channel.
Downloads of the bank’s TMB Touch mobile application rose by 63% from January to June to reach 1.5 million.
Total transactions grew by 129%, or nearly 12 million transactions per month, with the TMB Wow redeemed reward programme when conducting online transactions, delivering more than 85 million transactions.
“We have seen a significant increase in the number of customers using more than one TMB product and service since the end of 2017 as a result of a rise in account privileges focusing on giving customers with more benefits,” said Mr Huisman.
The bank has launched the “Everyday Everyone Get More with TMB” campaign as a strategy to expand the primary customer segment.
The scheme offers a 1.6% interest rate for TMB No Fixed account customers who conduct at least five financial transactions via their TMB All Free accounts every month.
Customers who conduct transactions via the bank’s mobile application also receive reward points that can be redeemed for privileges.
Active customers are defined as those conducting financial transactions at least five times a month, Mr Huisman said.
Average monthly transactions are expected to increase in the coming periods, driven by the bank’s digital service channels, he said.
In response to recent rumours that brought the bank’s shares down by 3.6% on Monday, TMB Bank yesterday clarified that the bank has not invested in government or corporate bonds in Turkey.
“[The bank] has short-term letter of credit [L/C] discount transactions with Turkish banks in order to facilitate trade finance service for a TMB customer,” TMB Bank said.
These Turkish banks are among the top five largest financial institutions in Turkey, while a TMB customer is identified as a wholly-owned subsidiary of a multinational company.
“The size of the L/C discount [transactions] is less than 1% of TMB’s total loans, of which the loan status has remained ‘pass loan’ and payment is due this October,” said the statement.
Thai commercial bank investments in Turkey are very minimal and the impact is expected to be limited because trade financing with Turkey is less than 1% of total Thai trade, Asia Plus Securities (ASP) said in a research note.
Both Thai and Turkish traders would have to use an L/C with a bank used by an importer.
The bank would record the L/C as offbalance debt and would convert it into a short-term liability once the goods arrive at the port until the importer repays the bank, according to ASP.