KASIKORNBANK’s digital investment and collaboration key to its resilient retail banking performance
The bank showed a robust financial position and consistent business performance despite unfavorable economic conditions by adhering to its “customer centricity” strategy
Despite Thailand’s economic slowdown and contraction in the loan industry, KASIKORNBANK (KBank) was able to grow its retail banking revenue and maintain a healthy return on equity (ROE) and cost to income ratio for its business. Its fee income and transaction volumes remain strong points and contributed significantly to its income growth. The bank successfully safeguarded its double-digit market share in retail deposits, credit cards, debit cards and personal loans.
Delivering excellent customer experience across all channels
KBank saw a higher-than-average growth in retail customers in 2019. “We look at the strength of the bank according to our ability to acquire and engage customers. We’re committed to deliver seamless customer experience by providing non-stop the best service through understanding the customers’ needs, pain points, and easy onboarding,” said Wirawat Panthawangkun, Senior Executive Vice President at KBank.
One of the key drivers for its successful customer acquisition is easy onboarding process.
The bank introduced K-eSavings Account on its K PLUS mobile app to lessen the friction in account opening. The bank also continued to enhance its K PLUS mobile app as part of its digital banking agenda. It introduced new features to deliver excellent customer experience such as quick response (QR) payment in other countries, cardless withdrawal at branches, ATMs and convenience stores, international fund transfers with no fees, and purchasing of mutual funds. As a result, the bank is able to maintain a high digitally active customer base at more than 70%, while increasing the number and value of transactions at a double-digit rate.
Accelerating digital transformation through cross-industry collaborations
Aiming to be a digitally-oriented and customer-focused bank, KBank responded to domestic and global challenges by staying abreast of technological developments. The bank enhanced its products and service offerings by building ecosystems and leveraging the thriving ecommerce industry.
Significant partnerships were forged in 2019 including its collaboration with Grab, in introducing GrabPay wallet powered by KBank as well as loan products for Grab drivers. The bank offers lending to Thai sellers on Lazada and Shopee e-commerce platform. The bank uses its partners’ real time data for credit scoring and approval especially with their profile and transaction history.
KBank plans to launch “LINE BK” under the company KASIKORN-LINE, a joint venture with LINE Corporation. LINE BK is the first social banking brand in Thailand that aims to provide 47 million LINE users access to instant banking services, products, fund transfer, and personal loan with fast approval process. The company envisions to acquire new customers, make the company profitable from lending business and become one of the top lending institutions within five years.
Cushioning the impact of the COVID-19 outbreak for its customers
Under its ‘Stronger Together’ programme, KBank resolved to provide aid to cash-strapped customers and help them cope with the crisis until conditions improve. It granted debt moratorium for 650,000 retail and business customers with outstanding loan of THB 828,000 million ($26.38 billion), and extended THB 156,000 million ($4.98 billion) in new loans to 94,000 clients in order to boost their liquidity. Compared to the same period last year, total loans grew by 30%.
Keywords: Digital Transformation
Guest: Wirawat Panthawangkun