TMBThanachart Bank (ttb) wants double-digit growth in digital revenue from its retail banking business, aligning with the country's adoption of digital banking.
Digital income from retail banking accounts for roughly half of the total revenue generated by this segment.
Over the past few years, the bank posted double-digit annual growth in digital income from retail banking and this positive momentum is expected to continue, said Naris Aruksakun, chief of the strategy and digital group at ttb.
The growth is largely driven by auto loans, a core business that makes up 29% of the bank's total loan portfolio, and corporate loans, comprising 30%.
On average, around 200,000 to 300,000 applications for auto loans are submitted via its mobile banking app, ttb touch.
Mr Naris said ttb touch has roughly 5.5 million users and is expected to grow this year in line with improvements to the digital banking platform.
All individual financial services and products, including deposits, loans, insurance and investments, are available on ttb touch.
In the fourth quarter of 2024, 92% of ttb's financial transactions were conducted through digital channels, while 7% were via ATMs and cash deposit machines, and 1% at physical branches.
The bank's physical network continues to shrink, with branches declining to 472 at the end of 2024 from 894 branches in 2019. Similarly, staff numbers dipped from 19,800 in 2019 to 14,500 in 2024.
This trend is expected to continue as digital banking transactions increase and consumer financial behaviour shifts in the digital era, he said.
Mr Naris said ttb plans to enhance the digital capabilities and efficiency of staff to meet the growing demand for digital banking services.
Staff will offer personalised financial services on tablets, moving away from traditional service tools.
Despite the shift towards digital banking, he said branch services remain necessary for certain customer segments.
Ttb will continue to offer both digital and physical banking services, anticipating increased competition in the banking business from planned virtual banks, said Mr Naris.
"Pricing will be a key area of competition, particularly given the virtual bank model overseas where players offer higher deposit rates and lower loan interest rates," he said.
"As a result, cost control will be a major focus for traditional banks."
Mr Naris said cybersecurity is another priority, as ttb has adhered to the regulations set by the Bank of Thailand and the Thai Bankers' Association to prevent financial scams.