Revealing the strategies of 6 state banks in 66, moving forward towards sustainability with Chatchai Sirilai, Managing Director. Government Housing Bank (GH Bank)

Revealing the strategy of the State Bank in 66, moving forward towards sustainability and digital development in tandem with responding to government policy. Government Savings Bank moves forward to create Social Impact. GH Bank maintains its vision of being the best bank for owning a home. GH Bank aims to be a sustainable rural development bank. EXIM BANK is ready to drive trade and investment in Thailand. SME D Bank strives to be Bank for Thai SMEs, AOT, moves forward with organizational development in 4 areas.

GH Bank sees the world economy at risk of recession.
The banking business must grow carefully.

Mr. Chatchai Sirilai Managing Director Government Housing Bank (GHB) announced that GH Bank predicts that the world economy in the future There is a greater risk of entering a recession. This is due to the impact of strict monetary policy implementation around the world. to control inflation and the impact of the protracted Russian-Ukrainian conflict situation In addition, the foreign debt burden of developing countries is high. Meanwhile, the Thai economy tends to expand better. from the recovery of the tourism and consumption sectors

However, there is still high fragility and uncertainty. Therefore, the bank's business direction in 2566 focuses on cautious growth as follows.

1. GH Bank loan growth in 2566 aims to increase new loans by 3%, in line with the expansion of the Thai economy. It focuses on credit growth among low- and middle-income customers. and use strategies to take information from customer behavior into consideration in granting loans and cooperation with partners To create a home loan project that will reduce the cost burden of customers
2. Loan Quality: GH Bank emphasizes proactive risk management strategies in credit quality management. and closely monitor debt quality Especially customers in the low-income and middle-income groups. which is the main customer group of the bank and are a group of customers who are sensitive to economic growth and high interest rates.

Mr. Chatchai further revealed that For the upward trend of interest rates It is a challenge to help the people. Especially those with low incomes to have housing. Because they are a fragile group If there is a slight increase in interest rates It will affect your decision to purchase a home and your ability to pay in installments. As for current customers The bank will have management in place to help customers maintain their homes. With proactive measures to help customers who have problems with installment payments.

For deposit customers that will benefit from the upward trend in interest rates The bank will also promote savings among customers. that are appropriate to the savings characteristics of customers. Even though the interest rate situation is in an uptrend, GH Bank still manages costs To increase the loan interest rate as slowly as possible

It's the best bank.
for having a house

Mr. Chatchai revealed that in 2566 the bank will maintain its vision of being the best bank for home ownership under 5 main operational strategies:

Strategy 1 Manage loan portfolios for quality and sustainable growth. Focus on expanding the new loan base for both low-income customers (Social Solution), which is the customer group according to the mission. and middle-income customers (Business Solution) and maintain a quality loan portfolio with GH Bank, including bringing in technology systems to help manage asset quality.

Strategy 2: Enhance asset and liability management for sustainability. Manage funding sources and assets to an acceptable level of risk Under the situation of an upward trend in interest rates

Strategy 3: Upgrade digital technology for sustainability By using technology to elevate the process of both end to end process customer service (Digital Service) and support processes. To increase service efficiency Create a good experience for customers and help reduce operating costs for the GH Bank.

Strategy 4: Increase the efficiency of human resource management for sustainability. By raising the level of human resource management Both human resource procedures and increase the efficiency of personnel to keep up with changes in the environment and the direction of the Bank's operations. that aims to be a sustainable bank

Strategy 5: Enhance GRC integration and corporate image for sustainability. Focus on building confidence among stakeholders By elevating the Governance Risk Management Compliance (GRC) process to be more connected. To promote operational efficiency and performance Including increasing the efficiency of stakeholder relationship management, raising the level of CSR and the bank's image. To build more confidence among stakeholders

In addition, the Bank focuses on environmental management. By developing products that are environmentally friendly Improve operations to create additional value and reduce impacts on the environment. including promoting knowledge management To create innovation in the organization

“In 2566, the bank continues its vision of being the best bank for home ownership. This year, the bank will focus on creating the best experience for customers from using the bank's digital services. and aiming to be a bank with long-term sustainability.”

Mr. Chatchai further revealed that As for the bank's goals for 2566, the GH Bank still sets the goal of expanding new lending. Especially among low and middle income groups. including managing credit quality to an appropriate level By analyzing data for use in managing credit expansion and continued asset quality.

In terms of upgrading operations with technology, GH Bank aims to improve the customer service process, End to End Process, or providing customer service from the first step to the last step through an entirely digital system. This allows customers to receive convenience, speed and reduce the bank's operating costs at the same time with 3 main modules consisting of:

1. Funding aspect: Raising funds through many channels. Electronic deposit Savings lottery
2. On the loan side, with GHB ALL GEN, using Data Analytic in housing appraisal to develop the Digital Appraisal system, allowing customers to know the preliminary home appraisal price immediately while applying for a loan with the officials. Signing a loan contract electronically can replace the paper version with e-Contract.
3. Managing non-performing debt with the Application: GHB ALL BFRIEND helps customers who have trouble repaying home loan installments to receive options and repayment conditions that are appropriate to their problems, and the Application: GHB ALL HOME provides services for all needs. Regarding second-hand GH Bank houses, which will bring convenience to customers and reduce the bank's operating costs. Including helping to reduce housing inequality for low-income people.

“GH Bank's goals in 2566 aside from expanding new loans. Especially among low and middle income groups. The Bank also sets a long-term goal of becoming a Sustainable Bank that takes into account future impacts and risks from operating activities. so that the bank Have a strong long-term financial position and gained the trust of the public.”

Follow and read the News Banking column: Revealing the strategies of 6 state banks in 66, moving forward towards sustainability. Available in the February 2566 Finance and Banking Journal, Issue 490 in digital format:  https://goo.gl/U6OnIi

Including channels for ordering banking and finance journals Both current and past editions Complete in one place: https://moneyandbanking.co.th/2023/18250/