Making banking digital and simpler

Making banking digital and simpler

In line with lifestyle changes caused by Covid-19, UOB Thailand is extending financial relief programmes and rolling out digital solutions through omni-channel touchpoints

Mr Yuttachai says the bank will continue to invest in digital transformation and innovation while leveraging its omnichannel customer engagement model.
Mr Yuttachai says the bank will continue to invest in digital transformation and innovation while leveraging its omnichannel customer engagement model.

UOB Thailand remains steadfast in its commitment to using technology such as artificial intelligence (AI) to make banking simpler, smarter and safer for customers, says Yuttachai Teyarachakul, managing director and country head of personal financial services.

He said the pandemic has reaffirmed the need for digitalisation across different industries.

"We will continue to innovate and offer progressive solutions to our customers," said Mr Yuttachai.

"For example, we will collaborate with strategic partners from diverse sectors and harness our combined and complementary strengths, working to meet our customers' ever-changing needs and preferences across different life stages."

UOB Thailand is 99.66% owned by Singapore-headquartered United Overseas Bank Ltd.

He said Covid-19's global spread has resulted in a slew of structural and lifestyle changes, including the expansion of e-commerce and a growing shift towards online consumption.

With numerous countries experiencing lockdowns that disrupted brick-and-mortar businesses, the impact on global and local economies has been far-reaching, Mr Yuttachai said.

Throughout this turbulent period, the bank stood by its customers, he said. It extended financial relief programmes to help businesses and individuals who have been affected by the pandemic.

"The measures are aimed at assisting corporate clients as well as small and medium-sized enterprises with the extension of loan tenors and soft loan programmes. Individual customers were offered a moratorium on payments or lowered minimum repayments," Mr Yuttachai said.

"We hope our assistance schemes help to alleviate the disruption caused by the prolonged outbreak."

In addition, the bank has provided free income protection and life insurance coverage to those who contract Covid-19. Nearly 66,000 customers have benefitted from this initiative.

He said Covid-19 emphasised the importance of digitalisation because of societal constraints and physical separation.

"According to recent research, Thai customers are more willing than ever to go cashless and use digital banking services," Mr Yuttachai said.

"This digital transformation is critical for banks like UOB Thailand to ensure we are prepared to meet our customers' evolving needs."

RISKY BUSINESS

The bank blends the online and offline worlds to create distinct banking solutions that are delivered through omni-channel touchpoints in a manner best suited to each customer, he said.

One example of this strategy is the use of technology to enhance its wealth advisory capabilities.

"We take a risk-first approach to help our customers manage and grow assets," Mr Yuttachai said.

"This means we help them understand the potential risks of any investment before we consider returns so they can build stable revenue streams through core investments before taking on riskier, tactical investments."

In the face of market volatility arising from the impact of the pandemic, UOB's wealth advisers engage their customers in reviewing their investment portfolios.

As face-to-face interactions are restricted, its wealth advisers leverage technology such as portfolio advisory tools. These tools include a digital investment advisory platform that taps historical market data to forecast the performance of an investment portfolio, which may include funds, insurance and bonds, under various economic scenarios.

The bank also uses innovative solutions to strengthen customer engagement.

Thai consumers are generally familiar with Line, a popular mobile chat application. To better engage with its customers, the UOB Thailand Line account serves as a supplementary customer touchpoint and communication channel.

"By utilising this platform, we have made all privileges available via the app for the convenience of our customers," he said.

"We also offer personalised product offerings and tailored advice on Line, and send targeted notifications to customers about recommended products most relevant to them."

ONLINE CONSUMPTION

The bank has noticed a preference among its customers for online shopping since the start of the pandemic, said Mr Yuttachai.

Data from UOB Thailand shows the volume of its customers' online purchases increased by more than 85% between March to May last year compared with the same period in 2019.

"In view of the changing consumption patterns, we are collaborating with e-commerce platforms such as Lazada and Shopee as well as food delivery service providers in Thailand to provide special discounts to UOB credit cardholders," he said.

Over the years, UOB Thailand has consistently grown its business in tandem with the country's pace of economic development.

The bank aims to achieve double-digit growth this year and wants to continue to enhance its suite of deposit, card and wealth products and services to help customers achieve their personal financial goals, said Mr Yuttachai.

UOB Thailand projects the country's economic growth this year at 1.5%, in line with the Bank of Thailand's outlook of 1.5-2%.

"In our view, risks from the pandemic will remain high and affect consumer confidence and spending because of Thailand's slow vaccination coverage," he said.

"While private consumption and tourism are likely to stay muted, Thailand's trade and manufacturing industries could support overall growth in line with global economic recovery."

The bank also plans to continue investment in digital transformation and innovation while leveraging its omni-channel customer engagement model.

"We implemented transformation programmes to create a unified customer experience," said Mr Yuttachai.

"For example, for the digital onboarding process of TMRW -- our digital bank -- we applied remote know-your-customer guidelines established by local regulators. This enables easy processing to allow a simpler and faster way for customers to open an account.

"We are also enhancing our technological and digital capabilities across channels, products and services. We strengthened our systems' products, data, integration and security. Our investment in digitalisation is bearing fruit. We are leveraging the views and expertise of our technology and advisory panel, which consists of global professionals in the domains of technology, payments and digital platforms, to advance digital transformation."

As a digital bank for the mobile generation, TMRW launched in Thailand in March 2019 and focuses on providing customers a personalised and engaging banking experience.

He said the more customers make transactions on TMRW's mobile app, the more the company can understand their financial habits and patterns through AI-driven insights on daily and monthly spending and saving patterns.

The bank recently launched TMRW CashPlus, a one-stop digital credit solution that customers can apply for and use directly through the app.

TMRW CashPlus offers customers facing a short-term cash crunch the option of opening a credit line of up to 1 million baht.

"In addition to TMRW, we also redesigned UOB Mighty, our mobile banking app that enables customers to conduct various transactions and gives them access to special offers and discounts with a few clicks and swipes on their phones," Mr Yuttachai said.

UOB Mighty uses AI to provide customers insights about their financial behaviour, from saving to spending.

The app automatically generates a monthly summary with reminders for customers about bill payments, and sends them alerts about unusual transactions.

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