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Kasikorn Bank, Thailand's fourth-largest banking player by assets, is mid-way through its three-year K-Transformation project. It is also rolling out new branches and distribution channels in an effort to grow market share. Yih Lin Chen spoke to Khun Ampol Polohakul, first senior vice-president at the bank
Kasikorn Bank, referred to as KBank in Thailand, has been closing in on bigger domestic rivals Bangkok Bank and Siam Commercial Bank (SCB) due, it says, to a number of key initiatives focused on multi-channel delivery and customer service.
The bank's two big strategic initiatives are its K-Transformation and Channel Expansion projects, set for completion in mid-2009. Both are meant to help KBank "read customer demand, boost fee income and help ready the bank for changes in the Thai financial landscape", according to the bank.
The other big push is group-wide cross-selling. The Kasikornbank Group is made up of six different group entities, including KBank, Kasikorn Asset Management and Kasikorn Securities, covering seven market segments.
The seven include four corporate segments and three retail ones: Signature, for clients with an income greater than THB100,000 ($3,000) per month or an investment of THB5 million; Middle Income, which covers customers with an income between THB15,000 and THB100,000; and Mass Market, for individuals with an income of less than THB15,000 a month.
KBank has targeted customers in what it describes as the "business area network" such as small- and medium-sized enterprises (SME) and white collar professionals, though the bank is now expanding its focus on the more mature, upper income earners in Bangkok and the outlying suburban areas. The SME sector remains one of its biggest earners, however, with a 23 percent market share and a target of 30 percent by 2009.
Speaking to RBI, Khun Ampol Polohakul, first senior vice-president at KBank, said that the bank's channel delivery and customer service have become two of the most important differentiators that the bank brings to its customers in the competitive Thai retail banking market.
"What is important is that the designated channel supports the customer and is tied to the value proposition that the bank is proposing to this customer in terms of products," he said.
"The bank [needs] to communicate to customers that it is not just a bank but...