Picture courtesy of MindInventory

 

Siam Commercial Bank (SCB) is preparing for a turbulent financial period, scaling back operations over the next 12 to 18 months as Thailand’s economy faces significant challenges.

 

SCB's Chief Executive, Kris Chantanotoke, warns of difficult times, citing rising household debt, slow economic growth, and potential US tariffs as key concerns prompting the bank’s cautious strategy.

 

"The Thai economy and business sector will likely encounter increased challenges," expressed Kris, highlighting the need for strategic adjustments.

 

A significant worry is the looming threat of US tariffs on Thai exports, which could severely impact a nation that dispatches 20% of its exports across the Pacific. Kris warns that if Thailand faces tariffs 10% higher than its regional counterparts, the economy may suffer greatly, undermining Thai competitiveness.

 

Currently, SCB projects GDP growth at a mere 1.5% for 2025, with only 1% growth anticipated in the latter half of the year, sparking concerns of a potential technical recession.

 

In response, SCB is tightening its belt and embracing digital transformation, aiming for 25% of its revenue to come from digital banking by 2025. "Achieving this year's digital target will spur us towards even greater goals,” Kris noted, emphasising that moving online will help reduce operational costs and lessen reliance on physical branches.

 

The bank has already reduced its number of branches to around 800, with further closures expected as digital adoption grows. Nonetheless, Kris assures that physical locations still hold an important role: "Branches remain essential."

 

Simultaneously, SCB is bolstering its corporate banking sector, which it views as a key driver for growth, while being selective in SME and retail lending. The bank is focusing on mortgages and wealth management services for affluent clients.

 

SCB is also working to cut its cost-to-income ratio, which recently decreased to 36.8% in the first quarter of this year, as part of efforts to remain efficient during tough times.

 

With mounting debt and export concerns, Thailand’s oldest bank is opting for caution. Whether this strategy will suffice remains to be seen, but the emphasis on digital growth and strategic investments sets a clear path forward.

 

  Adapted by ASEAN Now from The Thaiger 2025-07-18

 

 

Great. All the branches I used to go to are closed. Three of them. And most of the ATMs have been jerked out, too. One SCB ATM in a 4km radius, where there used to five.  Some move, making your customers need to rely on Bangkok Bank's ATM. Sick and tired of being frog marched into using that damn phone app.

15 hours ago, John Drake said:

Great. All the branches I used to go to are closed. Three of them. And most of the ATMs have been jerked out, too. One SCB ATM in a 4km radius, where there used to five.  Some move, making your customers need to rely on Bangkok Bank's ATM. Sick and tired of being frog marched into using that damn phone app.

 

I've spent the last week in and out of my local branch trying to get their app to work, no good at all, just a waste of time for all concerned...

What are they going to do to get more money, start pilfering our accounts? They can't  save much more here in the North, they have systematically closed down every local branch in the San Patong / Hang Dong / Chom Thong area - no one left to sack.

15 hours ago, John Drake said:

Great. All the branches I used to go to are closed. Three of them. And most of the ATMs have been jerked out, too. One SCB ATM in a 4km radius, where there used to five.  Some move, making your customers need to rely on Bangkok Bank's ATM. Sick and tired of being frog marched into using that damn phone app.

It is a continuation of what I also observe in some western countries, with some banks even closing more than 85% of bank branches.
If you as a small businessman want to deposit money there, you have to pay for it, collecting cash from those banks is almost impossible, if you want to transfer a larger amount abroad, you have to answer to the bank.
More and more I get the anxious feeling that it is also going on here.

 

It must be by order of BIS, the bank of all banks.

16 hours ago, snoop1130 said:

A significant worry is the looming threat of US tariffs on Thai exports, which could severely impact a nation that dispatches 20% of its exports across the Pacific. Kris warns that if Thailand faces tariffs 10% higher than its regional counterparts, the economy may suffer greatly, undermining Thai competitiveness.

There is a solution to the Tariffs, but Thailand seems as though it can bluff it's way out of them in the old fashioned way.... promise everything and deliver nothing.

No biggie with closing of bank branches. I rarely go to any branch and haven't used them for years. If I need to make an international transfer, it's easily done with the very convenient phone app. And I never carry cash, it's just not necessary to carry cash in Thailand.

16 minutes ago, rickray said:

No biggie with closing of bank branches. I rarely go to any branch and haven't used them for years. If I need to make an international transfer, it's easily done with the very convenient phone app. And I never carry cash, it's just not necessary to carry cash in Thailand.

Wait for it 50 baht charge on every digital purchase.  That's how they will make money on digital.  They get you hooked on free use then either hit you or businesses or both with transaction fee.

 

Question when they close bank how do you know where your account is.

13 minutes ago, kingstonkid said:

Wait for it 50 baht charge on every digital purchase.  That's how they will make money on digital.  They get you hooked on free use then either hit you or businesses or both with transaction fee.

 

Question when they close bank how do you know where your account is.

Do you think your "account" is at a physical brick and mortar location? Money in banks is not even in the banks, it's just ones and zeros on digital ledgers. That's why a "bank run" will collapse a bank. If everyone who has an account goes to the physical location to withdraw their money, they can't. Because the bank doesn't have the money. So, who cares "where your account is"?

1 hour ago, rickray said:

Do you think your "account" is at a physical brick and mortar location? Money in banks is not even in the banks, it's just ones and zeros on digital ledgers. That's why a "bank run" will collapse a bank. If everyone who has an account goes to the physical location to withdraw their money, they can't. Because the bank doesn't have the money. So, who cares "where your account is"?

There you're right, but in that case, why is it that in Thailand you always seem to have to go to "your branch" to make any changes to your account?

I  remember trying to change something at my account in Pattaya - I'd opened the account on Pattaya Klang, tried to make a change at the branch on Pattaya Tai to be told that they couldn't do it there and I had to go to Klang - ridiculous!

 

In UK if I've got an account with (say) Natwest in London, I can conduct my business in a branch in Leeds. As you rightly said, it's all just ones and zeroes on a database.

4 hours ago, hotchilli said:

There is a solution to the Tariffs, but Thailand seems as though it can bluff it's way out of them in the old fashioned way.... promise everything and deliver nothing.

What is that?

Thais need to buy more American rice?

30 minutes ago, Jingthing said:

What is that?

Thais need to buy more American rice?

Buying some quality beef would be nice, dropping the import taxes to a normal level.. reduce the imbalance of trade and scrapping the luxury tax would be a good start.

They certainly are scaling back their services.

I’ve been to my local branch twice now because I received a message saying the name on my phone account and my bank account weren’t the same. Both times I showed them my phone bill in my exact name as on my account.

 

Now I’ve had the message a third time while I’m overseas on holiday and because I can’t go to the branch, they have blocked my access to mobile banking!

12 minutes ago, hotchilli said:

Buying some quality beef would be nice

Hormone enriched beef from the US? 

1 minute ago, stevenl said:

Hormone enriched beef from the US? 

Nah, some grass-fed beef from a trusted producer, they do exist.

Strange. Whenever my SCB account gets to a certain amount I withdraw it and move it to GSB. The manager runs over every time and wants to know why I am moving the money. 

I tell him it is because I can get a better interest rate elsewhere. 

With the government wanting to lower interest rates to increase loans, they should know we will look for the best interest.

6 hours ago, rickray said:

No biggie with closing of bank branches. I rarely go to any branch and haven't used them for years. If I need to make an international transfer, it's easily done with the very convenient phone app. And I never carry cash, it's just not necessary to carry cash in Thailand.

Wait till the app goes down. What you going to do then? 

4 hours ago, lavender19 said:

Wait till the app goes down. What you going to do then? 

Yep, good question. I've been waiting 5 or 6 years for that to happen to see what I would do. I'll let you know.