SCB entering its 'second phase' of development
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SIAM COMMERCIAL BANK president Yol Phokasub has laid out a vision for a "second phase" of the bank's development, in a bid to escape from matured growth and to ride the digital trend.
SCB under its former executives had laid a foundation for making the bank stronger after its troubled times due to the financial crisis in 1997.
The first phase of that recovery was led by former president Kannikar Chalitaporn, who completed her term on April 2. Under her guidance, SCB outperformed the overall banking sector with the highest profits and largest market capitalisation even though it is only No 3 in terms of assets.
Before taking the helm, Yol and Arthid Nanthawithaya, who now serves as vice chairman of the executive committee and chief executive officer, were helping strengthen new areas such as non-interest income and investment banking,
The bank now is going into the second phase (2015-2020), said Yol, adding that SCB needs to transform and change its mindset to ride the coming changes in technology.
Retail business is a clear example of the change of technology – shoppers now can purchase goods at any time anywhere without going to shopping malls. Yol said the bank would have to adapt to this trend.
SCB has a strong balance sheet, so it will take the opportunity to invest in technological transformation and to create a new management culture.
One of the cultures that all employees need to acknowledge and deal with is a tolerance for failure, he said.
“We are in the world of unknowns, but we have to move to ride the unknowns such as digital. Therefore, we might make mistakes but we have to detect them fast.”
The bank needs digital talent and has to change its organisational structure, so new executive appointments will be announced this week.
Under the new management structure, the bank will give more decision-making power to supervisors, meaning there will have to be more teamwork in running the business, jointly solving problems before reporting to high-ranking executives including Yol.
“Previously, the president participated in about 50 per cent of the decision-making, but under the new style of working I will change that to only 10 per cent,” he said.
Yol expects the bank will spend around two years adjusting itself to the new style of operations.
