KTB aims for transactional banking

KTB aims for transactional banking

Krungthai Bank (KTB), the country's second largest lender by assets, has set an ambitious goal to raise its transactional banking business to 20% in the next three years from 8%, in a move to increase fee-based income. 

The state-owned bank targets for its share of the segment to rise to 10% this year, said its senior executive vice-president and managing director of global transaction banking group, Songpol Chevapanyaroj.

Demand for transactional banking services, covering short-term working capital, cash management, supply chain, custodian, factoring and e-commerce, has increased along with greater business opportunities and economic development.

Songpol: 20% target share for segment

Kasikornbank (KBank) leads the transactional banking business with a market share of 25%, followed by Bangkok Bank (BBL) at 20%, Siam Commercial Bank (SCB) at 15%, and KTB.

The local large banks have paraded into the transactional banking business over the past several years, beating foreign banks after the US financial crisis in 2008.

KTB plans to focus on agriculture, logistics, construction, manufacturing and e-commerce sectors to expand its customer base for transactional banking. 

The bank will also offer attractive charges to attract new clients, even though on average its fees are lower than its peers'.

"We don't mean to cut prices to compete, but KTB already charges the lowest fees. However, the bank needs to improve financial services to build customers' confidence in order to increase our market share as targeted," said Mr Songpol.

The bank plans to launch innovative products to cater to customers' varied demands, and it will gradually increase the number of relationship managers (RMs) and specialists in key business areas including supply chain, cash management and custodian from the present 250 to 400.

Each RM currently takes care of 50-60 corporate and 100-200 small and medium-sized enterprises.

KTB shares closed Friday on the SET at 23.70 baht, down 10 satang, in trade worth 828 million baht.

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