ME by TMB set to close most branches
ME by TMB, Thailand’s digital-banking leader, plans to close down three of its four branches gradually this year after finding that very few customers visit them, as they can do their transactions easily online.
The three branches are Bang Kae, Silom and Esplanade, which cost a total of Bt5 million per year to keep running, said Rachada Sermsilapakul, head of the marketing and sales team at ME by TMB.
It will keep only one branch open, in CentralWorld. She said ME by TMB customers were able to acquire documents and make transactions anywhere at any time online, so don’t need physical branches.
ME by TMB will embrace digital channels as the contact means for customers. It is preparing to allow interested consumers to open accounts without any need to prove their identity at one of the bank’s branches. This will be made possible through a system called derived personal identity verification. Customers can fill in an application and download the necessary documents online to open ME by TMB accounts, similar to e-filing a personal-income-tax return, she said.
This system is scheduled for launch this quarter, after which ME by TMB will become the first commercial bank in Thailand to provide full-scale online processing for its services.
ME by TMB expects the number of its deposit accounts to rise to 1.2 million by 2021. As consumers become more familiar with online transactions that can be made via smartphones and tablets, fourth-generation wireless mobile telecommunications will benefit people by making transactions online faster and more convenient. New customers will go to full digital without any need to go to bank branches.
ME by TMB gives its account holders online access to services so that they can enjoy a higher interest rate than from general savings accounts elsewhere. It is keeping the deposit interest rate at 1.8 per cent per annum, Rachada said.
ME by TMB currently has 250,000 accounts and aims to have 300,000 by the end of this year. With the downturn in interest rates in the general banking sector, ME by TMB has a conservative target of total deposits worth Bt50 billion to Bt52 billion within five years, Rachada said.
ME by TMB was introduced in 2012 under the concept of “Self-Service Banking to Get More”. The rules for customers are uncomplicated. Deposits, withdrawals, money transfers, and checking balances and accumulated interest can be done at any time on any channel, including online applications and call centres.
Rachada said ME by TMB’s performance had exceeded its initial targets. Its growth rate has been more than 110 per cent a year. Its deposits have grown by about 80 per cent annually.
“All these figures have proved that we are on the right track. We foresaw market trends before any other service provider in Thailand,” she said.
“Importantly, we have had solid understanding [of consumers]. We know they will fully embrace the digital era pretty soon.
“Look at our interesting figures. The number of new customers has jumped by more than 20 per cent every year. This fact reflects that public understanding of ME by TMB services has been increasing.
“In Thailand’s banking industry, ME by TMB is the ultimate innovator. We have challenged the conventional norms by allowing customers to conduct their financial transactions at any time, anywhere, and to enjoy a higher interest rate. We offer interest that is higher than banks with human tellers can provide.”
The customer base of ME by TMB has increased by 20 per cent every year. Of its customers, 64 per cent are Bangkok residents. More than 80 per cent of the customers are between 23 and 46 years old.
At ME by TMB, savings accounts have had at least Bt250,000 each on average.
