As bilateral ties between Thailand and Lao PDR date back to the Ayutthaya era, the two countries share a border and have linguistic and cultural similarities.
Both economies rely largely on international trade, registering around USD5 billion a year in bilateral trade and rising steadily.
Although Lao PDR does not have territory connected to the sea, it is located in the center of the Cambodia, Lao PDR, Myanmar, Vietnam, Thailand (CLMVT) group as well as China, making the country an important gateway for transportation, tourism and trade.
The International Monetary Fund (IMF) expects Lao PDR to have an average annual economic growth rate between 2018 and 2022 of approximately 7%, the highest among CLMVT countries. Thailand ranks no. 1 for imports and no. 2 for exports to Lao PDR after China.
After China and Vietnam, Thailand records the third-highest investment in Lao PDR, where power plants, telecommunications, processed foods, processed agricultural products, hotels, trading and services are the most invested sectors among Thai companies.
Given the strong and steady growth of SMEs in the two countries, Bank of Ayudhya (Krungsri) has recognised the importance of seamless and easy international remittance transactions between them.
Driven by its “Digital First” strategy, Krungsri has thrived as Thailand’s fifth largest commercial bank and a Domestic Systemically Important Bank (D-SIB). Hence the Bank has collaborated with Lao Development Bank (LDB) in launching an innovative money transfer service, Krungsri-LDB Global Transfer, via Krungsri Biz Online (KBOL).
As a technology-driven corporate, Krungsri continually focuses on innovative solutions that offer beyond expectation experience to customers in the modern digital era. Echoing its corporate slogan of “Make Life Simple”, Krungsri always delivers products and services with the purpose of making people’s lives better.
Following the prior success using blockchain technology for international remittances, the latest Krungsri-LDB Global Transfer service will reduce remittance times for customers, enabling them to avoid handling cash, and saving transaction costs. At the same time, it takes the customer experience to the next level, with greater convenience, swiftness and security.
As one of Lao PDR’s leading financial institutions, Lao Development Bank (LDB) is the first bank leveraging its large service network to provide mobile banking and other services to accommodate Lao people with easy access to a variety of innovative financial services.
Krungsri-LDB Global Transfer
Krungsri-LDB Global Transfer is a real-time cross-country money transfer service via Krungsri Biz Online (KBOL), offering both Thai and Lao individuals and SMEs complete solutions that better respond to their business and personal needs. This convenient, fast and secure service is empowered by Krungsri’s and Lao Development Bank’s technologies.
Krungsri-LDB Global Transfer service can support money transfer to recipients’ accounts based on the currency being transferred without the need of currency conversion. In the first phase, the service will support funds transfer transactions in Thai baht and US dollar. More currencies are set to be added in the future.
“This collaboration in money transfer innovation has been initiated as Krungsri recognises the importance of facilitating money transfer between Thailand and Lao PDR on the back of significant business expansion of small and medium sized enterprises (SMEs) and large-sized conglomerates in the two countries. The service not only helps reduce remittance time, avoids handling cash, and saves customers’ transaction costs, but it is also takes the customer experience to the next level with greater convenience, swiftness and security,” said Mr. Dan Harsono, Krungsri Head of Retail and Consumer Banking.
The new service enables the business sector to reduce expenditure on financial transactions and helps migrant workers transfer money to their hometown families easily. This, in turn, will increase the volume of banking transactions and encourage smoother and greater trade flows between the two countries.
From now to the end of 2020, Krungsri customers can enjoy transferring funds via the Krungsri-LDB Global Transfer service from Thailand to Lao PDR with no fee and transferring from Lao PDR to Thailand at a 50% discount on the funds transfer fee.
More details, call 02 626 2626 or visit www.krungsri.com/ebiz
