SCB redesigns branches to be more automated
SIAM COMMERCIAL Bank is embracing automation to improve transaction efficiency at its redesigned branches to cater to the new behaviour of three customer segments – retail clients, wealthy clients, and small and medium-sized enterprises.
The bank will invest around Bt1 billion to install new machines, including automated devices that can accept up to 30 cheques per deposit, an innovative service available for the first time in Thailand.
Phanporn Kongyingyong, head of the retail segment and branch network at SCB, said that over the past three years, online transactions in the banking system had grown by an annual average of 30 per cent while branch transactions had declined by 5 per cent per year.
At SCB, online transactions last year grew by 50 per cent, while branch transactions dropped by 10 per cent.
More self-service machines will be put in place to keep pace with the changing business landscape and to satisfy clients, so SCB is redesigning its branches to comply with the trend, apart from closing down some branches that now see few transactions, she said.
SCB has 1,170 branches nationwide after closing 50 last year.
In developed markets, about half of physical bank branches have been closed over the past five years. Phanporn said SCB expected to close 30-40 per cent of its remaining branches over the next five years.
Last month, SCB launched a “business branch” pilot project at its Lat Phrao Soi 59 branch for SME clients. Phanporn said this branch was in the business district, and installing cheque deposit machines would increase the speed of services.
The bank believes that if the number of SMEs using this branch expands significantly, it will be a good indicator that the bank is doing the right thing by using more |self-service machines in its branches.
The bank plans to establish 50-60 business branches within two years.
Around 200 SCB branches currently cater to SMEs. Phanporn said the redesign programme would be gradually expanded to retail and wealthy customers, as the bank believes its branches must be remodelled in line with the behaviour of each customer segment.
SCB has separated its sales and service teams to enhance their skills as professional financial advisers as they prepare to accommodate customers in the digital era.
The bank aims to double its sales staff this year to 3,000.
Separately, Thanachart Bank yesterday launched its first cashless branch, called “Thanachart Express”, which uses automation to service all transactions instead bank staff. The first Thanachart Express is in MBK Centre Department Store in Bangkok.
