Money Expo marketing campaigns more subdued
MARKETING campaigns at this year’s Money Expo are not likely to be as attractive as in the past because banks are careful about acquiring customers amid the tough economy.
Housing loans used to be the highlight of these expos because zero interest rates could sway a borrower’s decision.
However, at the 16th Money Expo that kicked off yesterday, only two banks – Kasikornbank and the Government Savings Bank – are offering zero interest for the first six months of a mortgage.
Siam Commercial Bank, the market leader in mortgage lending, opted to promote its My Home My Cash equity-loan product rather than new housing loans. It offers zero interest for three months for My Home My Cash borrowers at the expo.
Phanporn Kongyingyong, head of retail at SCB, said housing lending in the first quarter was flat because the economic situation did not support people who wanted to buy a home.
Even though the government had implemented measures to stimulate the property sector, which ended last month, housing inventory remains huge, she said. The bank has to screen customers, especially those shopping for mortgages, so a zero interest rate for new housing loans is not a focus for the bank.
Alongkot Boonmasuk, head of housing loan product management and the marketing department at KBank, said the bank decided to resume zero-rate promotions for home loans at the expo because it wants to stoke consumer sentiment after the government stimulus ended last month.
The bank targets Bt600 million to Bt700 million worth of home loans at the event, up from Bt500 million it booked at the Money Expo last year.
The bank believes lenders will consider launching campaigns to carry on housing-loan growth momentum after the end of the government measures.
Many residential developers, especially for condominiums, have also strongly pitched an incentive similar to the government’s expired offer.
“We have seen free housing transfer fees and free interest for one year, which is subsidised by developers,” Alongkot said.
CIMB Thai Bank highlights an effective interest rate of 4.15 per cent per annum throughout three years instead of offering a zero-per-cent loan because that will give customers a clearer picture of the actual cost, said Onanong Udomkantong, executive vice president and head of retail loan products at CIMBT.
The Money Expo also is a platform for pushing deposit products. Each financial institution is competing in offering high interest rates to draw new customers.
However, with lower loan demand and the downtrend in interest rates, banks have toned down the campaigns to manage their cost of funds.
Major and mid-sized banks have refrained from holding deposit campaigns at the event.
CIMBT is the only one that has showcased 10-per-cent interest for a four-month fixed deposit, but depositors at the event must also buy a minimum Bt50,000 life-insurance policy.
