Kiatnakin Bank launches branch overhaul to lure investment
KIATNAKIN Bank (KKP) this year will invest between Bt400 million and Bt500 million to overhaul its branches while attempting to increase cross-selling of investment products to wealthy customers.
The bank wants its rich clients to view its branches as centres for investment, including financial advisory services. Its lending business, which mostly consists of instalment loans, will not be in the branches, as this customer segment is different from those using the bank for deposits and investment, president Aphinant Klewpatinond said.
"A lot of people don’t know KKP is a bank, and those who have realised this think KKP runs only a hire-purchase business, as our branches are not in prominent locations. Therefore, we need to overhaul all of our branches, and close some of the ones in less visible locations and whose deposit and investment volumes are small," he said.
Most of its standalone branches in Bangkok will relocate to shopping malls for the convenience of wealthy customers who require investment products.
Around three branches in Bangkok will be investment hubs.
Around 24 branches in Bangkok and some provinces will be closed this year. By the end of the current quarter, KKP will have a total of 62 branches, but some will be reopened in new locations, and it aims to have around 74 branches by the end of the year.
Aphinant said each branch should have a deposit and investment portfolio of not less than Bt3 billion.
At KKP, most clients are wealthy individuals whose deposit accounts hold at least Bt10 million. Customers who have investments with KKP are in the "Phatra Edge" category, with assets under management (AUM) between Bt2 million and Bt30 million, while those with AUM above Bt30 million are "Phatra Wealth".
KKP has AUM of Bt500 billion, of which Bt300 billion is serviced by Phatra Securities, Bt150 billion is in the form of deposits at KKP branches, and the rest is investments through KK Trade.
"After we overhaul the branches, we hope the amount of investments by our customers will grow by between Bt40 billion and Bt50 billion," he said.
Next year, KKP plans to use its branches for its auto-lending busi
ness, expanding from captive leasing at Suzuki and other auto dealers. The branches will remain the payment channels for its hire-purchase customers.
While KKP branches will handle other forms of credit, including personal and small-business loans, the bank has no plan to get into nano-finance, Aphinant said.
"We might set up a new brand for our hire-purchase business like some banks, but it is too early to say."
