KBank pares digital target [Bangkok Post, Thailand :: ]
(Bangkok Post (Thailand) Via Acquire Media NewsEdge) April 02--Kasikornbank (KBank), Thailand's fourth-largest lender by assets, has cut its transaction growth target for digital banking to 30% from 50% in light of the weaker economy.
President Teeranun Srihong said KBank previously set a large growth target for financial transactions via the internet and mobiles, in line with the rapidly increasing number of internet users.
Mr Teeranun said Thailand has some 24 million internet users and 15 million smartphone users, making financial services more convenient and attracting customers.
But the sluggish economy has dampened business activity and demand for financial services among all customer segments including corporations, small and medium-sized enterprises and retail clients.
However, during the recent Bangkok shutdown campaign by anti-government protesters, KBank found its digital banking transactions increased temporarily due to customers trying to avoid traffic congestion during rallies.
KBank ranks No.1 in the business segment with a customer base of 2.59 million.
Last year it showed strong growth of 51% from 2012, with a total worth of 420 billion baht for its digital banking transactions, which were worth more than 2 trillion baht last year.
Fund transfers through online platforms represented the largest transactions at 70% of the total, followed by mobile top-ups and bill payment.
KBank records 2 million new customer accounts of all types each year.
Digital banking customers have increased significantly in recent years to 2.59 million accounts, of which 60% are active.
Mr Teeranun said KBank has spent 1.5 billion baht in the past three years to upgrade information technology hardware and software, with another 500 million to be injected in each of the next three years.
The traditional counter service channel has shown annual growth of 10-15% in recent years, so KBank plans to expand that area as well.
Shares of KBANK closed yesterday on the Stock Exchange of Thailand at 180 baht, up two baht, in heavy trade worth 2.42 billion baht.
(c)2014 the Bangkok Post (Bangkok, Thailand)
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