GSB ready to transform into grassroots bank in bid to end social disparity
The Government Savings Bank (GSB) is planning to transform into a “fully social bank” so it can have a positive impact on society, GSB president Vitai Ratanakorn said.
This move, part of Vitai’s vision, will see the bank focusing on its three key client groups – low-income earners, small business operators and community organisations – with the aim of bridging social disparity, boosting their income and bolstering the grassroots economy.
Vitai said the bank has been taking care of these three groups for the past decade, and they are part of its mission. Up to 61.6 per cent of the bank’s customers or 12.8 million hail from these three groups.
The president said his bank is adjusting its mission and streamlining its operations, so they are in line with its goal of becoming a fully social bank that can have a concrete positive impact on society.
As part of its goal, the bank will enter the non-banking sector by refinancing loans that have been taken by low-income earners from non-banking entities at high-interest rates. The bank aims to help ease this group’s interest burden by between 8 and 10 per cent, he said, adding that GSB should offer this new service in the next six months.
GSB will also set up a centre to help people launch businesses as well as help existing small businesses develop further. The centre will provide small business operators knowledge on product design and marketing strategy, and will also create sales channels for them as well as give them loans.
The bank has also deployed digital technology to foster its operations in the new normal, such as introducing new features in its existing MyMo mobile application, which will enable users to access a wider range of services from their devices without having to visit the bank personally.
The new features, such as debt-restructuring services, digital leading and opening of accounts, are scheduled to be launched in the next six months.
Vitai added that since social and economic changes brought on by the Covid-19 outbreak have disrupted businesses, GSB hopes it will be able to help mitigate the impact on people and its customers.
