BANGKOK: The state-owned Government Savings Bank (GSB) planned to set up a team to take care of “premier” clients as it strives to become a more customer-centric bank.
Premium customers represent a mere 1% of the bank’s 20 million depositors, but their combined deposits account for 80% of the GSB’s total deposits, president Chatchai Payuhanaveechai said.
The bank plans to launch new products to serve demand from premier customers and open more branches in department stores to fit their lifestyle.
According to a breakdown of the bank’s depositors, the number who park less than 100,000 baht totalled 18 million or 92% of the GSB’s total depositors, while those depositing more than 100,000 baht but not exceeding 1 million baht totalled 1.4 million or 7%.
The bank intends to tap customers of all ages with a focus on those aged 15-30, Mr Chatchai said, adding that the GSB planned to raise the portion of the targeted group of depositors to 10% in the coming years from 5-6% now.
A customer-centric strategy is among several items in the bank’s planned reform. Others include image-building and marketing, development of products and services, human resources, information technology and risk management. Mr Chatchai said the state bank would increase fee income to 8% in the foreseeable future from 6% now to diversify risk.
The GSB’s lending business contributes 94% of the bank’s revenue, whereas commercial banks generate 40-50% of their revenue by fee revenue.
The bank plans for lending and deposit growth of 6% this year to 1.91 trillion and 2.06 trillion baht, respectively, with assets growing by 5% to 2.37 trillion.
Plans call for boosting fee revenue to 6 billion baht, representing 5% of the bank’s total revenue this year, up from 4 billion last year.
The bank’s non-performing loans are expected to make up 1.7% of outstanding loans by year-end.
