SCB ready to go fully digital by 2025, with a new focus on young people
In line with its “Digital Bank with Human Touch” vision, the Siam Commercial Bank (SCB) has announced its plans to become a fully digital bank by 2025.
At a press conference on Friday, SCB CEO Kris Chantanotoke said the aim is to target the new generation by putting both banking transactions and human services at their fingertips. He said this was in line with the bank’s new motto: “We know our customers through data, but understand them through emotion”.
“Now more clients are accessing financial services digitally, which has prompted SCB to establish goals in response to changing business landscapes,” he added.
Citing data, Kris said Thailand was the only Asean nation with the highest usage of financial apps, with 94% of the population conducting online financial transactions.
SCB now plans to offer its customers a full suite of digital financial services, as well as create cutting-edge digital products and services, he added.
The bank has also recently redesigned its management system in line with the digital banking trend, including the appointment of a new president and chief technology officer.
Kris added that of SCB’s 17 million customers, 80% use the “SCB Easy” mobile banking application.
To boost security, Kris said the app will soon include features like the “black screen” function, which darkens the user’s screen when they enter their password.
Under the new plan, SCB will also focus on the “emerging wealth group” or young people who wish to boost their wealth.
“Customers in the emerging wealth sector have more proficiency in using digital services as they are younger than the high-net-worth and ultra-high-net-worth groups,” he said.
He added that though the young are not well-off right now, they are eager to invest, so SCB hopes to provide them with digital solutions.
Kris also said that the banking business is seeing new players, with several technology firms entering the field. However, he said, 5% of these firms are profitable.
Banks, on the other hand, continue to reap profits thanks to a combination of solid capital foundation and improved service clarity, Kris said.
SCB’s total credit portfolio as of the end of 2022 stood at 2.3 trillion baht. This can be broken down to 980 billion baht in personal loans, 410 billion baht in loans to small and medium-sized businesses and 920 billion baht in loans to large organisations.
The bank expects its cost-to-income ratio in 2023 to rise to roughly 40%, loan growth will be targeted at 5% and return on equity will exceed 10%.
Related Stories:
