KTB keen on expansion of GMS business

Kittiya Todhanakasem, the bank’s first senior executive vice president, said KTB was currently the only foreign bank in Kunming assigned as the financial centre for southern China.

The Kunming operation will, therefore, have an increased role in supporting business activities in Yunnan province, which forms the northernmost part of the GMS, she said.

"The outstanding progress that we have seen is the rising financing demand for infrastructure in Kunming, and KTB is working with its partner bank in Kunming, Fudian Bank, in offering the first syndicated loan to a major Chinese construction company," she said.

Partnership is one of KTB’s development strategies in the GMS, she said, adding that last year its Kunming branch was able to sell Thai banknotes through Fudian Bank, while the Kunming branch received a yuan licence from the China Banking Regulatory Commission to facilitate entrepreneurs in conducting business transactions with their trading partners in China.

KTB sells between Bt30 million and Bt40 million monthly in Thai banknotes through its alliance bank, and has been asked by another Chinese bank to sell banknotes to them, as well as to develop other products.

KTB itself also requires more partners in Yunnan, said Kittiya, as this would help strengthen its payment products in the GMS because the bank does not have a network in all countries in the sub-region, she explained.

Payment products

The payment products it offers include remittances, banknotes and foreign-currency deposit accounts.

KTB targets 20-per-cent growth annually for its banknote business in the sub-region.

In Laos, KTB offers payment products in partnership with a local bank, Banque Pour Le Commerce Exterieur Lao, while in Myanmar, six partner banks facilitate remittances from Myanmar workers in Thailand.

"There is no reason not to do [something similar] in Cambodia and Vietnam in order to cover the GMS. The payment system will be expanded to co-branded ATMs as the next step," she said.

Meanwhile, KTB also offers credit cards of its subsidiary Krungthai Card to wealthy Laotians.

The bank is active in Laos, especially in the role of financing infrastructure projects, and has submitted an application for a licence to open a subsidiary in the country, she said.

Kaskornbank has already set up a subsidiary in Laos, enabling it to open more branches and ATM machines.

If approved, KTB hopes the subsidiary licence will help strengthen its payment and banknote business, said the executive.

The bank is also planning to reactivate its relationship with Acleda Bank, its partner in Cambodia, for promoting transactions in Cambodian riel and Thai baht, particularly in cross-border trade payments, she said.

KTB signed a collaboration agreement with Acleda Bank in 2009.

In Cambodia, KTB has a branch in Phnom Penh and a sub-branch in Siem Riep.

In Vietnam, however, while the bank is interested in having its own branch, it could take time to achieve this because Vietnamese banks are slow when it comes to seeking foreign partners, she added.