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Many more bank branches might close in the aftermath of Covid-19


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Many more bank branches might close in the aftermath of Covid-19

By The Nation

 

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The Covid-19 pandemic has compelled changes in consumer behaviour, and it remains to be seen if these changes will be the "new normal". One of the areas of behavioural change is in the use of financial services.

 

Since the Covid-19 outbreak, more people have turned to mobile banking. As a result, the number of transactions through the mobile channel saw a big leap. Commercial banks are beginning to review their branch strategies and how to adjust to changing customer behaviour.

 

Siam Commercial Bank (SCB) president Arak Sutivong said it was expected, after the Covid-19 crisis ends, that many commercial banks would reduce the number of physical branches due to the changing customer behaviour, which is considered an important catalyst.

 

In the past three years since the announcement of the SCB Transformation Strategy, he said the bank had closed many traditional branches. Currently, there are a total of 911 branches, but the bank has added other touchpoints such as SCB Express, which focuses on providing services via automated machines, or the SCB Investment Centre Wealth Management Centre, which focuses on financial and investment consulting, etc.

 

The number and rate of reduction of physical branches would depend on many factors, he said, adding the bank would use service satisfaction and customer experience as important factors in determining the design of the network and the service channels of the bank.

 

The bank focuses on providing omni-channel services in which customers can choose to use the service from their preferred service channels whether through a bank branch, through partners such as 7-Eleven, or via digital channels such as SCB Easy, he said. Overall, even though the number of bank branches may be reduced, access to financial services would reach more customers, he added.

 

Kasikornbank (KBank) senior executive vice president Wirawat Panthawangkun said the bank still gives importance to a variety of channels or "various platforms that customers can use for convenience". He said customers still used both channels -- physical branches and the digital medium.

"The bank's approach is that we will lean towards service channels by having the right number of branches through consolidation so as to maximise productivity and resources, including staff.

 

Employees will pool at the branch and a new plan will ensure there are no layoffs. At the same time, the bank will accelerate reskilling of employees to be ready to handle new jobs, and enable employees to create value for themselves and the organisation in the future."

 

Thakorn Piyapan, Krungsri's head of Krungsri Consumer Group and Head of Digital Banking and Innovation Division, believes that branch channels are required for face-to-face service, which builds relationship with customers in ways that online services cannot, such as by talking, giving advice, providing detailed information.

 

"Face-to-face service is still needed. But some transactions should be pushed to online as much as possible, such as bill payments or money transfers, because they can be done through mobile phones. But some customers still want to do their transactions at the bank. After the Covid-19 crises, we must wait to see how much public behaviour changes," Thakorn said.

 

Bangkok Bank executive vice-president Thaweelap Rittapirom said that in the future, the number of commercial banks' branches would gradually decrease in line with economic conditions and consumer behaviour.

 

However, they are still considered necessary because branches are a channel of communication for everyone at all levels to have access to financial services such as during the Covid-19 pandemic. The branch is a necessary channel that can help customers in need of financial services or get help from various government measures.

 

Naris Sathaphondecha, the senior director of the TMB economic analysis centre, said that at the end of March, there were 6,436 branches, down 72 from the end of 2019.

 

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Of the five major banks, SCB had shut the most number of branches -- 113 -- compared to the same period last year, followed by Krungthai Bank (54), Kasikornbank (40), Bangkok Bank (15) and Krungsri (11).

 

After the Covid-19 crisis, the number of branches and ATMs are likely to decrease due to customers increasingly opting for mobile banking. Traditional banking will rarely be used for standard transactions such as deposits, withdrawals, funds transfers, and payments, but more complex financial services will still be available in physical branches.

 

Source: https://www.nationthailand.com/news/30387390

 

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-- © Copyright The Nation Thailand 2020-05-07
 
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27 minutes ago, maechanman said:

People with retirement extensions based on money in the bank need to use banks in order to get the letter for immigration.

Sure.

 

Branch closure is happening all over the world. I use 2 banks in Australia, the first bank has reduced to 1 branch in 3 major cities, that's it. They did their home work to ensure customers get full service. For standard letters, statements, reports customer opens a list of available documents, click the required document and printed in 1 second.

 

Their website is very easy to use and they are very serious about security.

 

Same bank doesn't use automated answering machine. A bank officer answers every call, and cannot transfer your call, always very good listeners and very professional and polite, explain what you need and there's 99% chance it will be created within a couple of minutes, and good follow up where needed.

 

Very 'can do' bank, and very good interest rates on savings and longer-term deposit accounts.

 

Can deposit and withdraw cash at ATMs operated by other banks, my bank refunds any fees charged. 

 

It works. 

Edited by scorecard
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So who will take over if my original bank close.

 

Need new stupid bankbook, apply where? Must be original office.

 

Put my bankbook in laundry machine. Throw it away. Want new, because must have, "sir you must do polis report"!

 

So stupid, polis report, for my stupid laundry machine. That sucks!

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1 minute ago, Da Nang said:

So who will take over if my original bank close.

 

Need new stupid bankbook, apply where? Must be original office.

 

Put my bankbook in laundry machine. Throw it away. Want new, because must have, "sir you must do polis report"!

 

So stupid, polis report, for my stupid laundry machine. That sucks!

Perhaps it's possible to call the bank central call centre and they process what you need?

 

 

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2 hours ago, Somtamnication said:

The goal is using the qr code. Register within  your app for promptpay. I pay you with your phone number. No phone? I can pay directly to your bank account via the app. I have no cash but need to pay in cash and forgot my atm card at home?  Cardless atm. I tell my app I need 500b...scb sends a code to your phone, input the code in the atm and done. Kasikorn uses qr codes with your phone, point at the atm machine and get your money.

 

Thailand is way advanced. Really no need for plastic. Need a statement? The apps email it to you within 3 minutes.

Try using a QR code in a bar.

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1 hour ago, Da Nang said:

So who will take over if my original bank close.

 

Need new stupid bankbook, apply where? Must be original office.

 

Put my bankbook in laundry machine. Throw it away. Want new, because must have, "sir you must do polis report"!

 

So stupid, polis report, for my stupid laundry machine. That sucks!

You have to remember, bank pass books don't require washing  ????

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3 hours ago, Grumpy John said:

Yesterday wifey wanted to go to Noen Maprang branch of BAAC and as we approached in the pick-up we could see a huge crowd milling about so she says we go to PhiChit branch.....on arriving at PhiChit branch we could see a huge crowd milling about so she says on the way back we go to Sak Lek branch....and there were far less people....she goes to the door to get in and is told by the security guard only 150 people a day can get in...and they have already had 150 people.

 

Is this getting ridiculous....or was it ridiculous weeks ago?

Nothing is ridiculous in thailand seeing is believing They have banking system 20 years behind A few years ago i went to send some money overseas to my grandkids. So I go into the Kasikork bank and there is an employee standing there in thai traditional cloths I said to him mate i want to send some money overseas ?No can do its Songran Then I said is it a holiday? No its songran week and no can do. So my question was ? What the hell has this got to do with sending money OMG

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5 hours ago, Phil McCaverty said:

How do you make a cash withdrawal online in Thailand? Thailand is a long way from being a cashless society. In the UK I can pay for a round of drinks with a contactless credit card and ask for cashback at the same time, try that in Thailand.

 

I remember, when first moving to Thailand, paying for my shopping in Big C and asking for cashback. The cashier looked at me as if I had 2 heads. Thailand's banking system needs to move into the 21st century before it starts closing bank branches. We need more ATMs not less.

 

 

 

Complete nonsense.

Use an ATM, but maybe thats too difficult for you. You can’t expect another country tonhave the same practices as another one. 

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That doesn't surprise me. I need to visit a bank branch once per five years per account, to replace my ATM cards. More often in case one breaks. If I would actually update my bank books, I would need to replace them more frequently, too.

 

Now imagine Thai banks get rid of bank books and mail your ATM cards to you. Once that happens, I would never have to visit them again. Okay, in some exceptional cases maybe.

 

Most of the people who clog the branches seem to make payments that they could actually make online. It boggles the mind.

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8 hours ago, webfact said:

After the Covid-19 crisis, the number of branches and ATMs are likely to decrease due to customers increasingly opting for mobile banking.

 

24 minutes ago, ianezy0 said:

Use an ATM, but maybe thats too difficult for you. You can’t expect another country tonhave the same practices as another one. 

Not too difficult for me Mr Sarkey. However, the plan is to reduce the number of ATMs whereas we would probably need more (as I said in another post).

 

Any more smart remarks in your handbag?

 

 

Edited by Phil McCaverty
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18 hours ago, Somtamnication said:

Kasikorn uses qr codes with your phone, point at the atm machine and get your money.

 

Bit like a gun then . You point it at the teller and cash is forthcoming . Involves running and car chase afterwards though. No car , flag down one passing and point gun at driver and tell him to get out. You now have a car.

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I had to go to the bank on tuesday, in fact i went to 2 branches of BKK bank both were crazily busy and not with counter transaction more account opening stuff

I would have loved to do it online as normal but their internet banking does not allow international payments

is it something to do with this  5000 THB handout?

Edited by poohy
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4 hours ago, scorecard said:

Perhaps it's possible to call the bank central call centre and they process what you need?

 

 

Bank employees regard themselves as beyond argument, what they say goes.

 

Good luck with the debate about a polis report. And good luck getting a polis report (been there. done that). Bank on 3 hours of your day disappearing while a disinterested copper who speaks no English whatever (despite English being the official 2nd language of Thailand) types and then prints 3 copies of said report, which, when you read it, might as well be a confession to mass murder for all you know, unless you read Thai, which even the disinterested and monolingual polis officer probably could barely do.

 

Lot of luck, and welcome to the 3rd-world.

Edited by ParkerN
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9 hours ago, webfact said:

Kasikornbank (KBank) senior executive vice president Wirawat Panthawangkun said the bank still gives importance to a variety of channels or "various platforms that customers can use for convenience". He said customers still used both channels -- physical branches and the digital medium.

Right, Except the customer's 'convenience' requires them to produce a work permit if desirous of the immense privlege lending your money to K-Bank. No exceptions, dem's da rools duh. Oh yessir, you have a retirement visa and do not work in Thailand because Thailand does not give retirement visa holders a work permit? Wow sir, that's truly bad luck - WP please...

 

Banks like this ought not to be in business. If they closed all of their branches I would not mourn their loss one little bit. Same with SCB. Good riddance, don't ask me for water to put out the flames with.

 

 

Edited by ParkerN
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4 hours ago, steven100 said:

only robbers

I used to go to the same Bangkok Bank with my UK debit card for free over the counter withdrawals from my UK bank.

So now it's back to transferwise again.

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