Tan Keet Jin uses digital to create convenience for customers. CIMB Thai Bank
Tan Keith Jin
Chief executive of a small business
CIMB Thai Bank Public Company Limited
Building a Digital-ledConsumer Bank
Use digital to create convenience for customers
A world that is rapidly entering the digital age. Many financial institutions are aiming to become Digital Banks on the Consumer Banking side of CIMB Thai Bank, led by Tan Keith Jin, Chief Retail Business Officer of CIMB Thai Bank Public Company Limited, with the goal of being Building a Digital-ledConsumer Bank
“CIMB Thai does not want to be a Digital Bank, but wants to be a Digital led-bank or let digital be the leader. The heart is that digital does not replace but complements us in delivering good products directly to customers while helping manage the bank's costs.”
He said that although people say that small businesses in Thailand are quite difficult, But CIMB Thai is different from other places. Because there is a team that is Thai people including CIMB The Group understands the market and culture of each country and implements different strategies for each country.
Tan Keet Jin has experience in banking and finance in many financial institutions. such as Indonesia Singapore, England and the Central Bank of Malaysia and got to work with CIMB Group for more than 10 years in Thailand, has worked at CIMB Thai for 5 years, holding the position of Executive Vice President. Small business at the beginning of 2563 and currently holds the position of chief executive of small business.
Set 4 strategies
Conquer 5 big goals
Tan Keet Jin said that Consumer Banking of CIMB Thai Has set long-term goals from 2021-2024 in 5 areas:
- There is a performance measurement tool that considers a comprehensive risk profile of more than 20% (RAROC >20%).
- Has an income of more than 1.3 billion baht
- It has a higher cost to income ratio. 40%(Cost-Income Ratio <40%), currently at 48%
- There is a risk cost of loans that are not repaid less than 1.6% (Credit Cost <1.6%) and
- Profit before taxes of more than 5 billion baht
He continued: In order to reach the goals that have been set, STRATEGIC THEMES has been defined in 4 important areas:
- Wealth & PreferredHighlights Fully expands our wealth management business by delivering 5 core values to clients: tailored advice, products and experiences, personal and professional advisory services, clients have access to regional investment rights with Benefits include rewards and premium privileges, and customers will have easy access to multiple service channels.
In addition, it also includes the release of new products. By CIMB Thailand has launched a highlight product, Wealth Credit Line, which is a loan that uses assets as collateral to invest in financial products of CIMB Thai Bank for large investors (High Net Worth). The highest credit limit. up to 95% of the collateral and customers can take advantage of their existing investment portfolios to increase returns. “Wealth Credit Line, besides helping to increase investment returns, is also a loan tool to help manage customer investment portfolios. For example, when a customer already has an investment portfolio, this money will help the customer to invest more and arrange the portfolio into the risk profile that the customer desires.”
- Home loans and retail loans By providing sustainable and profitable lending (Sustainable & Profitable Lending), causing loans to grow appropriately through the lending engine and strengthening debt collection. and increase the ability to recover to normal
as well as expanding product sales across groups through new digital channels and data analysis. CIMB Thai currently has loan products covering both unsecured loans Secured loans Car loans and motorcycle loans with the following strategies:
Unsecured Lending increases fee income through partnerships (Grow NII via partnerships). Currently, CIMB Thailand is in the process of finding a partner to launch credit products for online purchases, such as when wanting to buy things through e-commerce platforms. You will be able to choose whether to pay by credit card or loan.
Release new product features (Launch Newproduct Features) from which CIMB Thai currently has Personal Cash and Extra Cash products or cash cards. There will be a new feature: customers using the Extra Cash service will be able to pay in installments instead of having to pay the full amount or pay the minimum amount.
Using a direct processing system (Straight-through processing (STP)) to make it easy for customers to know the loan approval results quickly. By using technology such as eKYC to help and Upgrading the offerings to retain the old customer base (B-score: Enhanced ETB offerings). B-score is a type of credit scoring that uses customer behavior data to present products that are most suitable to customers.
Secured Lending: Maintain price leadership in products that provide high returns, add top-up to existing customers to maintain customer base, and evaluate quality for the quality of customer experience and assets.
Car loans: 4-Wheelers (CIMB Thai Auto) focuses on good customer groups, expanding loans through digital, including focusing on high-yield customers and increasing fee income through insurance sales.
Motorcycle loans: 2-Wheelers (Worldlease) upgrades its portfolio through dealers and customers, improves its tracking and collection system, digital transformation and in the area of personal loans, targeting Mass Segment customers.
“CIMB Thai has loan products that cover the entire loan market, whether it be personal loans, home loans, motorcycle loans, and car loans. As a result of the recent COVID-19 outbreak, we believe that we have now passed the lowest point and expect that the loan market will grow this year.”
- Digital-led retail banking By revolutionizing the product distribution channel to support digital, whether it be Digital Wealth, Digital Lending, digital lending, Digital CASA, digital savings, Digitise operations / Branches, operating system / digital branches.
Currently, CIMB Thai has digital savings products. Or a Chill D savings account (Chill D Digital Savings) that can conveniently open a Chill D account via mobile phone, verify your identity through counter service, interest up to 2% per year, no minimum deposit limit, no passbook. And there is no debit card annual initiation fee.
“Current consumer behavior prefers to open accounts online rather than going to a branch. It can be seen that the number of bank branches decreased from the beginning of 2020 to 70 branches with 1,725 customer accounts. At the end of the year, there were 59 branches but 12,103 customer accounts, with more than half being customers who opened savings accounts. Digital or Chill D savings account
- Effectively control expenses By increasing efficiency in cost use, improving efficiency of sales work, studying to integrate car lending of subsidiary companies into the bank's system to reduce costs.
Confident in 2021
Definitely will reach the goal.
Tan Keet Jin said that CIMB Thai's Consumer Bank business in 2564 aims for loan growth of 4-5% from the expectation that the loan market this year will grow approximately 7% by CIMB. Thailand will focus on home loans and car loans, while Fee Income Growth is expected to grow at 21.1%, coming mainly from the Wealth business.
For NPL, it is expected to be at 4.2% and Credit Cost will be at 2.0%. In addition, in the past, Consumer Bank has been able to generate income for the bank approximately 60-65%, with the target being that Consumer Bank's income will increase to 70. % in 2024
“Last year was a rather bad year due to the COVID-19 situation, but this year the situation has started to improve. In addition, the Thai economy can recover quickly. If no unexpected events occur, we are confident that we will definitely be able to reach our goals.”
Follow the People column in the Finance and Banking Journal. April 2564 issue, issue 468, on leading newsstands nationwide and in digital format: https://goo.gl/U6OnIi
