Karon Banks

[madmitch]

Karon/Kata may lack a shopping centre or supermarket but there's certainly no shortage of banks.

In the Karon Plaza area on Patak Road there are currently five banks almost next to each other (plus a ubiquitous 7-Eleven of course) and I heard yesterday that a sixth is going to open soon.

I asked the GF why they need six banks when there's only a limited amount of business and she replied that they like to set up a kind of banking zone. Now, logic for me would be to open a bank in an area that doesn't have one, so you can monopolise the custom from the one district.

I understand a zone being set up for speciality items such as Panthip Plaza or Fortune Town in Bangkok with their hi-tech shops but to me it's like the watermelon stalls on the side of the road; one sets up and is successful and all the other villagers decide to take a piece of the action and set up clones.

Does anyone actually understand this thinking? And I hope someone does have a logical explanation.

[hansgruber]

Same could be said about optometrists.

Thai logic, has their ever been any?

[eezergood]

Just to copy what someone else does - look how many bloody fortunas there are, why?? no one can tell you

[LivinginKata]

Yes, I once asked my wife why so many of the same type of businesses in one area. See was surprised I asked as it obvious that the same type of business in one area makes it easier for folks to know where to find a particular service. I myself don't see that logic as it dilutes the amount of income per shop/bank/whatever. I got a blank look ... oh well

[eezergood]

nod & smile

[NomadJoe]

Security.

Most evenings if you look closely you will see a big Thai man dressed partially in a Thai police uniform with a big 357 on his hip out front of those banks. It's the same reason there are several across from the Chalong police station. I have noticed many police stations in Thailand with a cluster of banks around them.

[Roel]

One reason I can think of is that Thai business people tend to work with at least three or four different banks. Very convenient for them if they can handle their business with several banks within walking distance. So the banks cater to the needs of their most important customers. If you open your new branch next to the competition you might get business from their customers as they will surely walk in one day for quotations/negotiations. Whereas if you choose to open your branch a few kilometers away they will not come. That will be convenient for the (poor) locals only. Just a theory of course.

[NamKangMan]

The reason is quite obvious, madmitch. They are making Karon/Kata a "hub" for banking. :)

Seriously, this is common business practice in the west as well. Best example is the fast food industry. Notice they are always near each other. You may go out to get a burger, but when you see a pizza place next door, you may change your mind and get a pizza.

You have to be where your competitor is in order to be able to compete with them. At the very least, setting up so close to your competitor allows you to advertise, specifically, through street signage, to people in need of your particular service/product.

If they walk into one bank, and enquire about a product, if there is another bank next door, they are more likely to seek a second price/quote and you may take some business off your competitor.

Some branches/franchises will even run at a loss, just to maintain a presence in a small town where their competitor is trading.

[fiddlehead]

I don't see what's wrong with putting like-minded businesses in the same area.
You see it all over Thailand and I guess I thought it was strange at one time, but now am used to it and actually prefer it.

Need an ATM? If the 2 at your bank have long lines, go to the next bank's.
Need fruit? The new market on Vichit road will have most all varieties covered.

Need bansai? There's a small town in Issan that has every other business selling it.

How about chicken baked in a ceramic pot? Small town on the way to Krabi has them.
Massage?

Bars?

Don't always think their way is wrong.
It's just different.

[TaoNow]

It's called the Yellow Pages approach to commerce and has worked in Bangkok for generations. Don't knock it unless you live it.

[stevenl]

I'm with Mitch on this one. Many of the same shops next to eachother makes to me sense if you want to visit multiple shops as a customer, e.g. for furniture, second hand cars, etc. But for banks this does not make sense to me.

[NamKangMan]

I'm with Mitch on this one. Many of the same shops next to eachother makes to me sense if you want to visit multiple shops as a customer, e.g. for furniture, second hand cars, etc. But for banks this does not make sense to me.

Why?

If you want a credit card, car loan or home loan, or want to invest in a term deposit, why not have several banks (shops) next to each other and the best deal gets your business.

The days of being loyal to one bank, for decades, and having a "relationship" with your bank manager, are well and truly gone.

Same as buying a car or furniture - you want the best interest rate, credit card or loan. Credit, or investments, are the banks "products" just as a car or furniture are the shop's products.

[madmitch]

For the consumer it's great. It's just that I don't get the concept from a business perspective.

[NamKangMan]

For the consumer it's great. It's just that I don't get the concept from a business perspective.

It's the "consumer" that generates the bank's business/profits. it makes sense.

[stevenl]

I'm with Mitch on this one. Many of the same shops next to eachother makes to me sense if you want to visit multiple shops as a customer, e.g. for furniture, second hand cars, etc. But for banks this does not make sense to me.

Why?

If you want a credit card, car loan or home loan, or want to invest in a term deposit, why not have several banks (shops) next to each other and the best deal gets your business.

The days of being loyal to one bank, for decades, and having a "relationship" with your bank manager, are well and truly gone.

Same as buying a car or furniture - you want the best interest rate, credit card or loan. Credit, or investments, are the banks "products" just as a car or furniture are the shop's products.

I can just as easy, sorry, make that much easier, check that online, and go to the bank of my choice.

And with all the paperwork required, especially for businesses but also for personal accounts, I much prefer to make my choice and stick to that bank.

But with buying furniture, cars etc. I'd like to personally see the product.

So for me there are big differences.

[NamKangMan]

I'm with Mitch on this one. Many of the same shops next to eachother makes to me sense if you want to visit multiple shops as a customer, e.g. for furniture, second hand cars, etc. But for banks this does not make sense to me.

Why?

If you want a credit card, car loan or home loan, or want to invest in a term deposit, why not have several banks (shops) next to each other and the best deal gets your business.

The days of being loyal to one bank, for decades, and having a "relationship" with your bank manager, are well and truly gone.

Same as buying a car or furniture - you want the best interest rate, credit card or loan. Credit, or investments, are the banks "products" just as a car or furniture are the shop's products.

I can just as easy, sorry, make that much easier, check that online, and go to the bank of my choice.

And with all the paperwork required, especially for businesses but also for personal accounts, I much prefer to make my choice and stick to that bank.

But with buying furniture, cars etc. I'd like to personally see the product.

So for me there are big differences.

You can check online, how many Thai's can????

Most Thai's have no idea about internet banking.

Many of them have no access to the internet. Example, see all the bar girls in the internet cafes chatting to their "boyfriends" overseas.

Many Thai's have good telephones now, but probably don't want to spend money on data, researching on the internet. Cheaper for them to ride the scooter down to where all the banks are and do it in person.

Their time/labour is nothing for them.

Granted, if you are talking about the more wealthy and educated Thai's, sure, but they are the minority, not the majority.

Edited May 14, 2013 by NamKangMan

[stevenl]

I'm with Mitch on this one. Many of the same shops next to eachother makes to me sense if you want to visit multiple shops as a customer, e.g. for furniture, second hand cars, etc. But for banks this does not make sense to me.

Why?

If you want a credit card, car loan or home loan, or want to invest in a term deposit, why not have several banks (shops) next to each other and the best deal gets your business.

The days of being loyal to one bank, for decades, and having a "relationship" with your bank manager, are well and truly gone.

Same as buying a car or furniture - you want the best interest rate, credit card or loan. Credit, or investments, are the banks "products" just as a car or furniture are the shop's products.

I can just as easy, sorry, make that much easier, check that online, and go to the bank of my choice.

And with all the paperwork required, especially for businesses but also for personal accounts, I much prefer to make my choice and stick to that bank.

But with buying furniture, cars etc. I'd like to personally see the product.

So for me there are big differences.

You can check online, how many Thai's can????

Most Thai's have no idea about internet banking.

Many of them have no access to the internet. Example, see all the bar girls in the internet cafes chatting to their "boyfriends" overseas.

Many Thai's have good telephones now, but probably don't want to spend money on data, researching on the internet. Cheaper for them to ride the scooter down to where all the banks are and do it in person.

Their time/labour is nothing for them.

Granted, if you are talking about the more wealthy and educated Thai's, sure, but they are the minority, not the majority.

You have strange ideas about Thais.

But I'm not getting in a dispute here, you seem to think all banks together makes perfect sense because the Thai bargirls want to check out all banks for the best rates, I don't think this makes sense.

[NamKangMan]

@ stevenl

No, that's what you seem to think. What I think, is not as many Thai's go online to reseach products/services, as you do. Many simply
don't have access to a computer/internet, probably due to afforability, or lack the knowledge on how to use one.

I gave one example of Thai's who obviously don't have access to the internet, some bar girls. When you walk past an internet cafe, especially around 11pm to midnight (European late afternoon/early evening) many terminals are taken by girls chatting to their boyfriends.

Why would they pay money to use the internet to research a product/service when a short scooter ride away they have all the main players in the industry in one location and can speak to someone in person, not chewing through the pre-paid phone credit or paying an internet cafe by the hour.

Now, add Somchai, who sells som tum for a living, and all other minimum wage staff, and you can see why this makes sense in Thailand.