TMB Bank hopes to migrate 60-70% of its retail customers to the digital platform this year after expanding its mobile banking capacity to prepare for the transition.
About half of the bank's total retail clients used its mobile banking app, TMB Touch, last year, said chief retail banking officer Roel Huisman. The bank predicts 90% of basic financial services to be available on the digital platform by year-end.
TMB, the country's seventh-largest commercial bank by assets, launched its mobile banking app in 2015. TMB Touch users now number 2 million, of which 1.5 million are active every month.
The bank's mobile banking app user growth averages 10% a year.
Mr Huisman said TMB does not set specific goals for mobile banking numbers, dependent on new customer base expansion.
Financial transactions via TMB Touch totalled 657.64 million in 2018, a surge of 81% from the previous year.
TMB has entered into a non-binding memorandum of understanding to consolidate with Thanachart Bank (TBank) through an entire business transfer with an estimated transaction value of 130-140 billion baht, forming the country's sixth-largest bank by assets, worth 1.9 trillion baht.
Digital transactions are expected to continue growing at a fast pace this year in line with the digital era. The bank has expanded mobile banking capacity by three times in preparation for positive demand.
The bank plans to launch new mobile banking features offering customers more convenience and simplicity for financial transactions. It plans to launch instant loans covering personal loans and credit cards around mid-year.
Apart from convenience, speed and security, the waiver of digital transaction fees gives TMB Touch another advantage when weighing financial transactions.
Despite the decline in the bank's transaction fee income after fees for digital transactions were scrapped, the digital channel can help cut operating costs for TMB's brick-and-mortar branches, which are experiencing a significant drop in transaction volume.
"We've re-skilled branch staff with a focus on advisory services, which would contribute to the bank's income in the longer term," Mr Huisman said.
Thailand ranks No.1 globally in mobile banking penetration at 74% of the population, higher than the 71% of Sweden, which is considered a cashless society.
TMB shares closed yesterday on the Stock Exchange of Thailand at 2.26 baht, down two satang, in trade worth 173 million baht.