KBank's retail arm focuses on fee income

Executive vice president Pakorn Partanapat said yesterday that KBank’s retail business division in 2013 would aim to maintain the high growth of fee income, which was 26 per cent or Bt17.2 billion this year.

Bancassurance, credit and debit cards bring in fee income, and the bank projects that these three products will generate income growth of 20-30 per cent.

These three products this year showed impressive growth, especially bancassurance. Fee income from bancassurance rose by 46 per cent over 2011, followed by credit cards and the merchant channel, which increased by 29 per cent, and debit cards, which grew by 25 per cent.

Pakorn said KBank aimed to be the main bank for retail customers, by tailoring its products, services and banking channels to customers’ lifestyles.

The mini-branch is an example of this "lifestyle channel", designed for white-collar workers who might find it inconvenient to go to a regular bank during their working time. The mini-branches are in 11 BTS Skytrain stations and operate from 5pm-8pm.

He said KBank aimed to enhance its branches for anywhere-anytime service via this "lifestyle channel" strategy to acquire 2.6 million new customers, for growth of 30 per cent from the existing 10 million customers.

KBank has budgeted Bt500 million to renovate existing branches and to set up 80 new ones. By the end of 2013, it will be operating 975 branches nationwide.

Pakorn said the increase in the daily minimum wage would support consumer spending; moreover, the government’s investment in infrastructure will stimulate income for all sectors, while retail banking gains opportunities from the resultant high purchasing power.

Lending in KBank’s retail business in 2013 is expected to expand by about 10-13 per cent to Bt319 billion, driven by growth of housing loans of 5-8 per cent, credit cards 11-14 per cent and personal loans 15-18 per cent.