Introduction

The emergence of Thailand 4.0 has sparked innovative approaches, driving the banking sector to support new economy businesses. Digital disruption and evolving customer preferences also continue to influence Thailand’s dynamic transformation in the banking sector.

In this report, we benchmarked the top 6 Thai banks – Bangkok Bank, Bank of Ayudhya (BAY), Kasikorn Bank (K Bank), Krungthai Bank (KTB), Siam Commercial Bank (SCB) and TMB Thanachart Bank (TTB) on the Twimbit Purpose Index. The report highlights key growth areas, challenges, and strategies banks are adopting to stay competitive in this rapidly changing landscape and become the banks of tomorrow.

Benchmarking the best of Thailand’s banks

It is crucial to underline the best of Thailand’s financial institutions, as it can yield valuable information in understanding the core issues the country needs to solve to expand and grow even further. Hence, the Twimbit Purpose Index proved helpful in our benchmark to successfully analyse the 4 key purpose pillars:

1. Customer experience (CX)
2. Employee experience (EX)
3. Supplier satisfaction
4. ESG (Environmental, Social and Governance) impact

Growth Score	The growth in revenue Y-o-Y (Year on Year)
Purpose Score	The aggregate purpose score for each pillar
Bubble Colour	The colours indicate the bank’s profitability
Size of Bubble	The size denotes the operating revenue size of the banks

As it stands, Bangkok Bank is the largest bank in the nation, while SCB has the most digitally forward propositions. The report also uncovered the following:

1. Bangkok Bank and Krungthai Bank have higher revenue growths compared to other banks in 2022
2. SCB, KTB, TTB and Bangkok Bank have an above-average profitability rate in 2022
3. Kasikorn Bank currently possesses the largest operating revenue size
4. SCB has the highest purpose score, followed by K Bank, BAY, TTB, Bangkok Bank and KTB

The analysis also revealed 3 growth opportunities across the 4 key areas that banks must focus on for future success:

1. Frictionless digital-only banking
2. Expand BaaS and embedded finance ecosystem offerings
3. Sustainability and ESG integration

Industry challenges and growth drivers

The country’s gross transaction value of digital payments stood at ~USD 113 billion in 2022. The digital economy is also expected to reach ~USD 53 billion by 2025. These drivers indicate that the country is on the path of a digital revolution.

While the banks have fully embraced digitalisation with various digital offerings, they face challenges. These could include its challenge with average revenue growth despite its strong operational performance and high CASA ratios. Other factors include the following:

1. Higher cost-efficiency ratios
2. Higher ICT expenses lead to high operating expenditure
3. Low net interest margins and high non-performing loans

Top 6 Banks in Thailand and their initiatives

• #1 Siam Commercial Bank

• 1. CX initiatives

RACEF solution (Real-time analytics and customer-experience feedback)

The RACEF solution harnesses big data and AI to offer comprehensive insights across various touchpoints like branches, call centres, and mobile apps. By integrating diverse data sources, SCB can better enhance its CX and ensure faster, more reliable services.

Digital innovation

SCB aims to transcend traditional banking by fostering ecosystems, engaging high-net-worth customers, and creating innovative platforms like “Home 360,” “SCB Auto solutions,” and “Auto sales tool.” Additionally, the Bank plans to expand banking agents and e-KYC coverage, facilitating cross-border payments.

SCB Easy

SCB’s digital platform, SCB Easy, offers various financial services, such as investments, insurance, card services, and transfers to bill payments. The platform’s AI-based chatbot can also assist in query management, account monitoring, and reward program optimisation. The app incorporates a unified data system, empowering customers to manage their budgets and finances efficiently.

• 2. EX initiatives

Data-driven strategic workforce planning

SCB employs Microsoft’s Power BI for People Analytics, enabling data-driven HR decisions. It encompasses various factors such as headcount movement, learning, resignation analysis, and real-time dashboards. This strategic approach supports SCB in identifying talent, mitigating risks, and aligning workforce planning with organisational objectives.

HR on mobile

The bank has deployed a mobile HR platform that provides convenience by enabling employees to update information and apply for personal information updates, leave requests, goal and KPI setting, salary slip viewing, internal job searches, and more.

Employee engagement

SCB introduced the ‘Wan-La-Nid’ online platform with gamification techniques to foster an ‘appreciation culture’ among employees. The platform also offers a spectrum of engagement activities, from learning modules to general management tasks.

The bank holds comprehensive reviews to optimise activities on the platform, ensuring effective long-term employee engagement.

• 3. ESG initiatives

Sustainable finance

SCB developed the FINNIX app, a nano-finance service to increase liquidity for freelancers, low-income customers and small entrepreneurs. It provides them with 24/7 digital loan services with approval in only 5 minutes.

The bank also created the SME Academy for community development, aimed at uplifting the capabilities of SMEs to thrive in the digital era.

Other notable initiatives include the SCB Global Clean Energy fund and other ESG-linked green products.

Social impact

SCB created Robinhood, a lifestyle non-profit superapp for small restaurants to expand their online sales opportunities and create job and wage gains for the delivery personnel. The platform also allows shop owners easier and quicker access to loans.

Other notable initiatives include digital learning platforms, youth scholarships, blood drives, etc.

Environmental impact

SCB enforced the ‘SCB climate risk assessment taskforce’, which studies and assesses climate change risks across the Bank’s portfolio. Since its implementation, SCB has reduced greenhouse gas emissions of over 960,000 million tons (20%) of carbon dioxide equivalent per annum, while energy and water consumption decreased by 19% and 33%, respectively.

• #2 Kasikorn bank

• 1. CX initiatives

Omni-channel experience

The Bank integrated service channels like K PLUS (mobile banking app), KBank website, branches, LINE official Account, Call Center, and KBank Live (social media) for a seamless experience. Additionally, the Bank linked K PLUS with partner platforms for customers to redeem Rewards Points and convert K PLUS points into other member cards’ points for service flexibility.

K-contact centre

KBank enhanced its contact centre customer experience with non-voice options, secure internet voice calls via K PLUS, and a smart agent portal to streamline operations and boost service efficiency. The Bank prioritised swift complaint resolution, improved first-call solutions, and trained employees in empathy skills for superior customer experiences.

Partnerships

KBank embraced data-driven collaborations using AI to enhance customer services and operational efficiencies across its business lines. The bank also partnered with Lazada to introduce MADFUND on the Lazada Sellers Centre app. This collaboration aims to support e-commerce traders in financing via K PLUS for real-time loan applications and instant drawdowns.

It also adopted a multi-channel services approach, forging partnerships with global and national leaders like Grab, Facebook, LINE, Lazada, Shopee, Central JD FinTech, JD Central, and PTTOR.

• 2. EX initiatives

Work that FITS

To promote flexibility and work-life harmony, Kbank adopted a hybrid work format. The strategy promotes a collaborative, innovative, and agile work culture, reducing workplace hierarchy and emphasising leadership values. Employees can now have flexible working hours and locations, foster trust between supervisors and staff, all while ensuring data system security for customer-oriented outcomes.

KONNECT+ app

KBank offers a comprehensive range of employee benefits accessible through the app, including telemedicine services, annual health checkups, mental health support via the “OOCA” platform, fitness facilities, and medical treatment provided by KBank physicians.

Financial assistance

KBank provides diverse loan options to employees, including home, car, education, and medical treatment loans. Employees also benefit from funds like the provident, compensation, social security, and cremation welfare funds. Wrapping it up, financial assistance is also available for retirement, children’s education, and maternity leave at 98 days with full wage payment (exceeding the standard requirement of 45 days).

• 3. ESG initiatives

AFTERKLASS Project

AFTERKLASS is an online platform that educates youths on financial literacy, business startups, learning skills, and daily living. It offers three Klasses:

1. Biz Master: covers trade, savings, and investment tips for young people
2. Smart Society: covers learning skills enhancement
3. Play Yard: covers various activities and future living skills.

Kbank also introduced the GO GREEN TOGETHER Klass to fulfil its ESG criteria. This program features banking systems, simulators, games, quizzes, and financial knowledge for participating youths.

Nan Sandbox Project

KBank participates in Nan Sandbox, a public-private initiative tackling deforestation in Nan. The project aims to resolve land-use issues, encourage eco-friendly livelihoods for local farmers, and improve the quality of life through forest rehabilitation and fair land allocation.

Ethical conduct

KBank conducts comprehensive orientation sessions for new directors, emphasising roles, policies, and codes of conduct via electronic systems and LINE KONNECT+. It also conducts regular training and assessments to ensure understanding and compliance among employees and suppliers, fostering responsible business practices.

• #3 Bank of Ayudhya(Krungsri)

• 1. CX initiatives

Seamless authentication solutions

The Bank of Ayudhya implemented the National Digital ID: NDID to improve interbank digital identification service during transactions. It also introduced biometric technology to verify customer identity for new application registration, as well as expanded the scope for events in which customers change their phone numbers, forget their PIN codes, or request to unlock PIN codes before returning to use KMA that provides them convenience, ease, and enhanced security.

Customer Experience Division

The bank established the ‘Customer Experience Management Division’ to collect and analyse customer feedback from various channels. The division also facilitates staff feedback and promotes internal cooperation to enhance operational and service processes. The insights gathered are crucial for product and service development planning and are presented to the ‘Customer Experience Council (CXC)’ for further action.

Ease of payments

Krungsri and Max Solution Service Co., Ltd. have collaborated to introduce the ‘e-Wallet by Max Me’ application, catering to customer demands in the digital era. This e-wallet service offers a seamless experience in dining, travelling, shopping, and payments.

By establishing a business ecosystem, the application brings together partners to provide exclusive user benefits. Krungsri, as the system integrator, has developed a secure and comprehensive payment system for top-ups, payments, and fund transfers within the application.

• 2. EX initiatives

Innovation hub

In October 2022, BAY launched the Krungsri Innovation x Chiang Mai, the first innovation hub in Chiang Mai. This innovation hub aims to be a knowledge centre for the tech community to develop innovative digital financial solutions for Thailand’s digital economy. It also aims to create job opportunities and support local communities through cooperation with universities and local startups.

Learning and Development

Krungsri has diverse learning programs to upskill and reskill employees. Executive development programs like ‘TRANSCEND’ and ‘TRANSITION’ focus on leading in the digital disruption era and advancing the organisation. Some of the programs are:

1. The Krungsri School of Data program develops data skills and promotes a data-driven culture.
2. The Krungsri School of Digital and Tech program enhances digital and technology skills.
3. The People Manager 101 program empowers supervisors to drive team performance and compliance culture.
4. People Manager’s Toolkits provide resources for effective team management and a positive work environment.

• 3. ESG initiatives

Krungsri ‘Carbon Neutrality Vision’

To fulfil its ESG initiatives, BAY declared its ‘Krungsri Carbon Neutrality Vision’ in conformity with the United Nations Sustainable Development Goal 13: Climate Action, and Thailand’s Nationally Determined Contributions (NDCs), as well as MUFG’s Carbon Neutrality Declaration, with the following goals:

1. Decarbonisation of the bank’s operations by 2030
2. Decarbonisation of the bank’s financial services by 2050

The bank is undertaking the ‘Carbon Footprint for Organization (CFO)’ evaluation to measure greenhouse gas emissions from its Head Office and Krungsri Ploenchit Office. Additionally, the bank collects and calculates the carbon footprint of all its branches and 14 subsidiaries.

Social projects

BAY actively engages with the community through diverse social projects, which involve

1. Financial literacy support
2. Social and community development initiatives
3. Art and cultural preservation efforts
4. Environmental projects

The bank also provides financial support for scholarships, disaster relief, and donations to public benefit organisations.

• #4 Bangkok Bank

• 1. CX initiatives

Branch transformation initiatives

Its initiatives involved:

1. Mystery Shopping
2. Service and Sales Quality Roleplay (SQR)

Both assessments are conducted twice a year across all branches to measure branch service quality.

Mobile banking app

Bangkok Bank has modernised its mobile banking app, introducing online account openings for services like e-savings, mutual funds, and securities trading. It offers self-service features, allowing users to manage personal information, request account statements, and control credit card services 24/7, providing convenience and enhanced security.

Other functionalities include enabling digital debit card registration, loan applications, and life insurance purchases. The app also introduced Be1st Smart Rabbit LINE Pay with cute characters for contactless payments, enhancing engagement through gamification with campaigns like ‘Reeb La – Reeb Laek’ for quick rewards.

Contact centre

The bank’s contact centre offers extensive financial services through automated systems and staff assistance, enabling customers to conduct various transactions, inquire about account activities and balances, and make payments or transfers.

It provides authentication services through Citizen ID, Telephone PIN, and mobile SMS OTP, adapting to the increasing use of digital channels and social media for customer engagement and support.

• 2. EX initiatives

Initiatives for retired employees

The Bank prioritises the financial literacy of retiring employees with provident fund management, investment policies, and post-retirement financial planning. There are also special allowances and healthcare benefits, such as:

1. Lifelong medical treatment
2. Social clubs like the Bua Yai Club
3. Financial assistance through dedicated funds for critical needs

Additionally, the “60 Young Wow” project offers opportunities for healthy retirees to work in the call centre, fostering income generation and value creation for both the bank and its customers.

Succession programs

The Bank conducts an executive succession program, specifically tailored for future roles such as Business Relationship Managers (BRMs), Assistant Relationship Managers (ARMs), and Senior Relationship Officers (SROs) in the commercial and business banking divisions.

This training emphasises leadership, business relationship management, and credit skills, employing a mixed and flipped learning approach and real-world problem-solving scenarios.

The program incorporates 70% virtual classroom learning, 20% self-study, and 10% innovative learning methods, preceded by individual assessments to tailor participant development plans.

Medical care programs

The Bank provides comprehensive medical services to employees, including free access to healthcare centres at designated office buildings, reimbursement for medical and dental expenses at specified rates, and issuance of referral letters for hospital treatments, easing employee financial concerns. There are provisions for mental health counselling, stress management sessions by a psychologist, and sharing health-related knowledge through internal communication channels for employees’ well-being and awareness.

• 3. ESG initiatives

Framework for credit underwriting with ESG risk assessment

The Bank implemented a credit underwriting framework encompassing ESG (Environmental, Social, and Governance) considerations. This includes ESG risk and impact assessment tools for credit officers, ensuring alignment with their responsible lending policy for business and personal loans.

Sustainable finance

The Bank collaborated with multiple agencies to integrate sustainable banking principles into its operations. This included joining the Thai Bankers’ Association in issuing an ESG Declaration, guiding the banking sector in addressing ESG concerns and steering Thailand’s economy toward sustainability.

ESG in supply chain

The Bank introduced a supplier code of conduct mandating adherence to human rights, labour, community, personal data, and intellectual property standards. Regular monitoring ensures supplier compliance, and the Bank offers guidance to align with the code.

Human rights compliance is integral to the Bank’s ESG assessment, serving as a criterion for supplier participation in procurement and assessing risks associated with key suppliers.

• #5 TMB Thanachart bank

• 1. CX initiatives

CXM platform

TTB prioritises Customer Experience Management by employing real-time NPS and CX Index metrics across branches, contact centres, and digital channels, using insights to tailor individualised journeys. It utilises a robust CX framework focusing on insights, design, delivery, measurement, and culture to continually enhance customer interactions and promptly address concerns via a proactive CXM platform.

TTB Touch

‘TTB Touch’ resembles an innovative “humanised digital banking” concept for the bank’s mobile banking app that leverages AI for more hyper-personalised services.

It is focused on getting 80% of non-financial services fulfilled via digital offerings. The app provides a comprehensive digital experience, offering personalised notifications, branch-like services, consolidated rewards, and even non-banking solutions like car management, simplifying various transactions within a single platform.

Financial literacy ecosystem

The Bank introduced a suite of financial literacy programs, such as:

1. fintips for Gen Y
2. fin live & learn for employee training
3. finbiz supporting SMEs
4. fintools aiding personal finance planning.

In 2022, they integrated these programs into a unified financial literacy ecosystem, offering tailored content for diverse customer groups and life stages.

• 2. EX initiatives

Employee well-being

TTB offers a comprehensive employee well-being program covering various health initiatives, including stress management, health and wellness, personal development, and financial planning.

The Bank launched a psychotherapy program in 2022 to support and enhance employee well-being in collaboration with the oasis. This allowed employees to directly schedule private sessions with the program’s qualified counsellors for confidential and anonymous support.

TTB Awards (Recognition program)

The Bank annually hosts an in-house competition recognising employees’ innovative initiatives benefitting customer financial well-being and bank performance in six areas. In 2022, six awards were granted to teams showcasing significant impacts across distinct criteria, involving over 730 employees from 73 teams.

TTB leadership program

The Bank introduced a leadership program to develop team leads and heads, enhancing skills in leading teams and change management. It aims to create a skilled workforce across six dimensions: customer dynamics, results execution, risk management, change leadership, team management, and business leadership.

• 3. ESG initiatives

Youth aimed initiatives

TTB’s fai-fah Learning Centers, spread across five locations, empower youths aged 12-17 with art and life skills, including a specialised centre in Nonthaburi for children with hearing impairment.

1. The Tae Young Thai project engages nationwide youth in preserving Thai identities through contests.
2. Project Fun for Fin fosters financial literacy among community children, focusing on mindful spending and smart saving.

Community engagement initiatives

TTB launched 27 fai-fah for community projects involving 3,149 volunteers, benefiting 41,523 residents. The Ar-Sar Chuay-Kan-Tam program also facilitated over 20,000 contributions to communities, which included:

1. DIY handbooks for underprivileged students
2. Exercise balls for the elderly
3. Collars for animals
4. Eco-friendly medicine bags.

The Bank also supported The Thai Red Cross Society by selling 220,000 Red Cross lotteries, offering prizes like a Mercedes-Benz C220d Av sedan and gold bars.

Cultural initiatives

TTB’s cultural initiatives include the Garuda Museum, showcasing over 150 Garuda statues, aiming to preserve Thai heritage. Additionally, the Royal Kathin Robe Presentation, in its 16th year, saw charitable donations exceeding 22 million baht(USD 0.6 million) benefiting various charities, schools, and hospitals, aligning with the Bank’s commitment to sustainable community support.

• #6 Krungthai Bank

• 1. CX initiatives

Ecosystem banking

KTB is at the forefront of digital innovation by establishing products and services in 5 key connected ecosystems: government agencies, payments, healthcare and wellness, education, and mass transit. This aligns with the Bank’s strategy to create new innovations and meet their customers’ growing demands.

WE CARE initiative

WE CARE is a customer-centric program focused on soliciting instant customer feedback via QR codes, fostering employee morale, and incentivising exceptional service by identifying and celebrating top-performing staff as “WE CARE Champions”. It significantly boosted customer satisfaction, reduced complaints, improved service levels, and contributed to customer happiness and employee engagement.

Payment innovation

The Bank has launched various payment solutions such as:

1. Krungthai NEXT – a comprehensive app
2. Paotang Pay – an evolving super wallet with QR payments
3. Pao Tang Application for digital bond trading.

Additionally, initiatives like Krungthai Gold Wallet and PointPay for Thung Ngern Stores aim to simplify gold investment and facilitate cashless payments using accumulated points, fostering customer convenience.

• 2. EX initiatives

ONE Krungthai app

ONE Krungthai app is designed as a comprehensive super app for employees. This digital platform integrates various work-related functions, aligning with modern lifestyle. It introduces a novel employee experience by gamifying banking activities, allowing employees to collect badges and coins for rewarding redemptions. By incorporating gamification principles, the app effectively enhances communication and boosts employee engagement, fostering an interactive and enjoyable interface for organisational activities.

KM Transformation

KTB established a Knowledge Management (KM) Committee comprising representatives from various groups, appointing KM Agents and developing KM Experts as trainers. This initiative fosters a culture of continuous learning, enabling the transfer of crucial knowledge through sharing sessions. Training programs on KM were conducted for key personnel to systematically manage knowledge, promoting a sustainable learning culture that adds value for employees, customers, and stakeholders.

Training programs

The training programs emphasise 3 core areas:

1. Functional skill development (credit knowledge, product sales)
2. Bridging skill development (data management, innovation through hackathons)
3. Digital skill enhancement (AI, data analytics, cybersecurity, and digital transformation)

These initiatives aim to upskill and reskill employees across roles to meet evolving industry demands.

• 3. ESG initiatives

Biodiversity finance initiative

The Bank partnered with UNDP and Raks Thai Foundation for the “Koh Tao, Better Together” project under the biodiversity finance initiative. This collaborative effort raised funds to support boat drivers on koh tao, engaging them in beach cleaning and marine debris collection. It also helped contribute to environmental conservation and restoration of marine ecosystems along the coastline.

Trading platform for “carbon credit”

KTB and InterOpera – Singapore have forged an MOU for the BIS-UNFCCC Project Genesis 2.0 (Carbon Credits & Green Bonds). The collaboration aims to build a prototype for an international carbon credit trading platform, striving to decrease expenses related to greenhouse gas emission reduction.

The initiative targets international carbon credit trading, aiding in achieving emission reduction goals on corporate and national fronts, fostering opportunities for Thai trade, and supporting entrepreneurs committed to transparent and responsible pollution reduction.

‘Krungthai RELIFE’ campaign

The campaign focuses on fostering environmental consciousness among employees. Initiatives include the RELIFE Project with bottle recycling machines at the Bank’s headquarters and a ministry branch, converting plastic bottles into upcycled products. It also includes the InnoWaste project, which converts canteen food waste into soil, helping the bank eliminate 2,550 kg of food waste in 2022.

Opportunities

The 3 growth opportunities across the 4 key areas that banks must focus on for future success are:

1. Frictionless digital-only banking : Focus on creating seamless digital banking experiences to elevate customer satisfaction and convenience through user-friendly interfaces and accessible, efficient services.
   
2. Expand BaaS and embedded finance ecosystem offerings: Delve into the potential of banking-as-a-service (BaaS) and embedded finance offerings to diversify revenue streams, collaborate with non-financial partners, and drive financial inclusion.
   
3. Sustainability and ESG integration: Analyse the role of banks in supporting Thailand’s net-zero goals by integrating sustainable practices, reducing financed emissions, and embedding climate risk management into core operations.

As the Thai banking landscape evolves, enhancing customer experiences, and fostering sustainable finance practices will be instrumental for banks to thrive in this competitive environment. The journey towards digital leadership will be defined by innovative strategies, technological prowess, and a customer-centric approach, ensuring banks remain agile and relevant in the years to come.