First year with Siam Commercial Bank Create balance in the organization, paving the way for “Digital Bank with Human Touch”
“1 year as CEO of Siam Commercial Bank Quite satisfied with the progress of the work. If I were to rate the past 1 year, I would give myself a 7 out of 10 in terms of performance. Employee satisfaction dimension and clarity of strategy on challenging problems This score is considered appropriate.”
After the major organizational restructuring of Siam Commercial Bank into the "SCBX" group (SCBX), with Siam Commercial Bank is a key pillar for SCBX and on August 1, 2565, the mother ship of SCBX appointed “Krit Chanthanothok” to the position of director and chief executive officer of the bank to continue its vision of being the most admired bank. or The Most Admired Bank
As of August 1, 2566, 365 days have passed since taking up the position of Chief Executive Officer. Siam Commercial Bank, 1 year in the North Star, moves forward to lead the organization with strategy. “Digital Bank with Human Touch” Towards the goal of being the number one digital bank in wealth management Ready to provide a service experience that is seamlessly connected across all channels.
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Combining "people" with "technology"
Krit Chanthanothok, Chief Executive Officer Siam Commercial Bank Gave a special interview with "Bank Finance" that there is a plan laid out for working with Siam Commercial Bank, divided into 3 phases Phase oneis the first year of serving as CEO in which he must create stability within the organization which has passed
As a new CEO, you must enter an organization with a long-standing culture. and entering the organization while the mission has changed is to change the structure to SCBX, therefore, it is necessary to create stability in the bank so that people in the organization do not feel worried and have confidence that Siam Commercial Bank is still the main pillar of the SCBX group as before.
“The first period of serving as CEO is to get to know and understand the organization To find the strengths that the future of Siam Commercial Bank should take in the banking business. What should it be about? Over the past 1 year, we've gotten to know each other. Understand both customers and employees across the country and understand what it is "Siam Commercial Bank" clearly
Krit said When understanding the organization, it was found that in terms of strengths, it was seen that Siam Commercial Bank should be number one in wealth management business. Because it is an area where no one has yet entered the market. and Siam Commercial Bank is strong enough to move forward towards this goal. Another strong point of Siam Commercial Bank is Technology which in the past SCB is an organization that invests heavily in technology. It is an organization that quickly adapts to technology. This is a strength that will allow Siam Commercial Bank to continue growing. These two strengths are the source of the "Digital Bank with Human Touch" strategy.
And the third strong point is that Siam Commercial Bank It is the first commercial bank in Thailand. And has performed this duty for 116 years. It will be a pillar of sustainability for the organization because if customers trust in Siam Commercial Bank, they can be at ease because they have been here for 116 years and must continue to be with Thai people. Definitely not going anywhere.
Under the management of the organization for 116 years, he compared the organization's management methods as A "three-legged stool" that must be kept as balanced as possible
“The three-legged stool of Siam Commercial Bank, the first leg is the “customer.” If the customer does not trust If you are dissatisfied, it will not make your business results good. And when the operating results are not good This will result in the second leg being "shareholders" who may not trust them to continue leading this big ship. And of course, the third leg is "employees" who may not be satisfied as well. Therefore, these three legs are Something I always try to maintain a balance with.”
“The three-legged stool of Siam Commercial Bank First legคือ "customer" If customers don't trust If you are dissatisfied, it will not make your business results good. And when the operating results are not good This will affect the second leg, namely "shareholders" who may not trust them to continue leading this big ship. And of course, the third leg is the “employees” who might be dissatisfied with it. So, these three legs are what I always try to balance.”
Krit said one year ago We managed to balance all three legs with satisfactory results. and saw good development in every leg The first place is the "customer" leg. It cannot be denied that Nowadays, the first line of banking service is applications. Although the importance of branches is still there, when people pay attention to this matter, it is something that banks must focus on. Especially the stability of the system has improved from before.
“A year ago, Siam Commercial Bank's mobile banking We used to have a record of being number one in things we didn't want. But until the second quarter of 1, SCB's mobile banking and digital channels It became the only bank with no record of failures. This is possible because we are committed to making all banking channels smooth and without interruption.”
Second legคือ “shareholders” The results show a clear picture of SCB's growth. And shareholders are satisfied that SCB can truly act as a pillar of the SCB X group.
Third legis "employee” who have always tried to communicate with employees Because of the change of CEO Change policy You must get to know your employees and tell them all the time that you will make SCB a fun, harmonious and successful organization by being open to listening to opinions from fellow employees. and adjust the way of listening From giving the opportunity once a year to every quarter. In order to know whether the employees are happy or not. in order to modify and take care of it to meet the needs of employees Or if the operating results are good, there should be rewards for employees as well.
In this regard, creating stability for the organization in the past year has moved forward along with generating income. The bank's operating results for the first half of 2566 were able to grow well, creating ROE for the SCBX group up to two digits as previously announced. In addition, they were able to reduce cost per income from 41% to 37% and control bad debt. Leave it as appropriate. In addition, income from fees has grown well. The overall picture of loans has continued to expand. It strengthens the bank. and build confidence in the committee that SCB can find problems and adapt to the future.
“1 year as CEO of Siam Commercial Bank I am quite satisfied with the progress of the work. If I were to rate the past 1 year, I would give myself a 7 out of 10 in terms of performance. In terms of employee satisfaction and clarity of strategy on challenging issues, this score is considered appropriate.”
Krit also said that The first year of the CEO role is just the beginning with a focus on stabilization. But it hasn't created anything new yet. Therefore, once you understand the bank's strengths, you will lead tostage 2 which will start in the second half of 2566
Moving forward into the era AI Bank
build Wealth For Everyone
Krit also said that Changing organizations doesn't happen in a single year. The goal of the build phase will be fully realized in the next 2-3 years, but by the end of 2567 we will start to see changes such as increasing digital revenue to 25% of revenue. Total in 2568, which means 40,000 million baht. From now on, this proportion is still less than 6%, but by the end of 2567, digital income must definitely move from 6% to double digits.
And setting the goal to be Best Wealth Banking, it must be clear how SCB's wealth services differ from other competitors. In the matter of Wealth, that is Siam Commercial Bank's strong point. and must be made more prominent
which in the past Wealth management guidelines are still unclear, both regarding customer groups and products. This causes information to be spread across many points in the bank or its affiliates. This may be because the interpretation of the word Wealth has not yet become so lacking that it has become a cake fight among one another.
“Therefore, it must be reworked to be seamless in both service points, customer groups, and products, and must make all Wealth matters Siam Commercial Bank to be the Best Wealth Banking, measured by satisfaction from the most Wealth customers, having the most assets under management (AUM ) is the highest and has the most comprehensive service format.”
Krit also said that Acquiring new customers is also becoming more challenging. Because after restructuring to SCBX, the unsecured loan business from banks was transferred to Card X, a company in the group. which means Siam Commercial Bank's search for new customers will change. We will no longer use retail loans as a guide. The challenge from now on is what must we do to get more middle- to upper-class customers to come in? If you wait for people to have a wealth level of 10 million baht to get it first. It may take a long time, so SCB must reinterpret the word Wealth.
“The word Wealth should not be limited to just people with money. But it should be said Wealth For Everyone because financial planning Including insurance is something that everyone must do. Whether rich or not But if you want to be rich first, you have to do it first. Both the issue of Wealth and technology are things that will be re-arranged to make SCB Wealth accessible to everyone under the appropriate use of technology.”
Technology is an issue that both Siam Commercial Bank and SCBX Group attach great importance to. Especially when it comes to AI, it must be used efficiently and effectively. The bank is currently in the process of using AI in customer care services, such as Chatbots, and is studying whether AI may be used in full call center services without using humans at all. However, AI is not new to Siam Commercial Bank. Because there are some parts that have been using AI for a while, namely credit consideration. debt collection and detecting fraudulent transactions
The bank expects to use AI to effectively answer sales needs. In order to be able to use the information available to present products to customers in the right place at the right time, for example, if a customer is interested in investing in Vietnam and has previously searched for information related to Vietnam, the bank's AI must be able to present investment product information related to Vietnam. to customers immediately
In addition, AI will serve as a tool for sales teams. For example, if a Wealth customer is looking for investment information on a topic of interest, the intelligence of AI will help Business Relationship Managers (RM) present investments that are relevant to the customer, making RM work. More efficient than ever
“The meaning of Wealth For Everyone is the combination of people and technology. It's not just about returns. But there is also the matter of trust. We may not be the fastest or the cheapest, but we will be the ones that customers are most impressed with. Because there is a human touch to it.”
However, it is a challenge if a bank becomes an AI Bank because it must ensure that the enormous amount of data is stored correctly and must be the right information. By developing AI, we must invest and create models that are intelligent enough. Including being able to apply AI to meet service needs. Currently, it is in the operational planning phase and AI will be gradually used in many aspects of the bank, such as Chat GPT, which will be seen within this year or early next year. There will be things that have changed from the past that customers can experience, such as presenting the bank's products and services at the right place at the right time.
“In the future, every bank must aim to become an AI Bank. It's just who can become one first or faster. The strengths of Siam Commercial Bank that are greater than others are people and excellent service. But what can be done to coordinate people and technology into one? Therefore, we must push people and machines to be used with maximum efficiency.”
Set a goal Net Zero in 2573
Green Finance 1 billion baht in 2568
Technology and wealth management are the core of goals in the creation phase, while sustainability or ESG is another core that is given great importance. Krit said: Since Siam Commercial Bank is the oldest bank, it has been in existence for more than a hundred years. It reflects being a self-sustaining organization. But it must also make the society, country, and world sustainable at the same time. It will use being a unique organization that has been around for a long time to drive change through 3 levels.
The first level is “within the organization.” That must aim for the Net Zero goal from operations by 2573, which has already begun, such as replacing more than 3,000 air conditioners in buildings to reduce greenhouse gas emissions. And anything that doesn't preserve the world must be completely changed. And there are many more things that need to be done.
The second level is “customers”. is the granting of green loans (Green Financing) with a total amount of 100,000 million baht by 2568 to enable customers to focus on ESG. There will be a project to help build knowledge and understanding and help both large customers and SMEs adjust their organizations. Enter a sustainable green world.
The third level is “country”. The bank will play a part in creating knowledge and pushing people to be aware of the importance of the environment and sustainability so that most Thai people will see the same view that there is only one world and this must be driven forward. together
Krit said If it can get through the construction phase in the next 2-3 years. The bank is ready to move towardsstage 3 is to make the organization efficient (Optimize) even though the future picture cannot be predicted. But I believe that by then Siam Commercial Bank will have a certain level of immunity. and the organs in the organization are ready to adapt
If the goal of having 25% of digital revenue is achieved, then Siam Commercial Bank will not have to worry about new competitors coming in, such as branchless banks (Virtual Banks). In the next three years, we will probably see New players enter the market But this is no longer a concern because banks also earn quite a bit of income from digital channels.
When Siam Commercial Bank is a leader in Wealth and lends to strong businesses The next dream is to make personal wealth management and corporate and SME matters one and the same. Because most people with wealth are business owners. But at present it can be seen that Company wealth management And personal wealth management is not the same thing. Therefore, in the next phase We may adjust it to be the same for both individuals and organizations by using a single touchpoint and the same RM for the opportunity to share of wealth and share of business and to consider the cost-effectiveness of customers will be easier. By changing to look at the value of customers with the bank instead
“In the future, we must change from an organization with many parts to one. But I believe that in the changing technology and business world, we should look at Customer profit more than Customer yield. We believe that Phase 1 and 2 of the plan will strengthen the organization to reach the Siam Commercial Bank's big problem, which is the balance between answering the problem. Customer needs and future growth are clearly evident.”
Follow and read the Special Interview column. Available in the September 2566 issue of Finance and Banking Journal. Issue 497 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/
