KBank plans to cash in on digital economy in 2017
Kasikornbank has announced its business plan for 2017, aiming to grow in tandem with the Thai economy, with a focus on service innovation and new business models, taking advantage of the digital economy.
The plan calls for a Bt5-billion IT development budget that will help bolster KBank’s leading role in digital banking. Driven by government investment, gross domestic product growth is expected to be close to this year’s at 3.3 per cent and KBank is targeting loan growth of 4-6 per cent.
According to KBank president Kattiya Indaravijaya, the bank projects 2017 GDP growth at close to this year’s 3.3 per cent, driven mainly by an expected 8.5-per-cent increase in government spending and mega-project investment. Private investment is expected to rise by 2.8 per cent next year while foreign tourist arrivals should increase satisfactorily at 4.8 per cent, a relatively low figure due to the high 2016 base. Exports are expected to increase marginally at 0.8 per cent for 2017.
KBank’s assessment is that consumer demand for digital banking services will continue to rise in Thailand. At the same time, the changing service landscape powered by technological advances is giving new players, particularly fintech operators, a greater role in the financial services industry. The bank said it has responded with key strategies of applying digital technologies to multiple services and of working with business
