Have Thai Banks Branched out too far?

[ExpatOilWorker]

The other day at Sathorn I was looking for a Kasikorn bank and, lo and behold there are 4 Kasikorn branches within a 100 m radius, not just ATM outlets, but fully staffed banks.

There are a myriad of banks in every single shopping center and usually a couple of banks even in relative small towns across the country. This is in such a stark contrast to my part of farang-land, where small individual bank branches have all but slowly disappeared over the past 20 years.

Although Thailand still to a certain extend is a cash economy, why wouldn’t Thai banks go through the same cost cutting process of their Western peers?

 

[worgeordie]

Yes there are Banks everywhere in Thailand, even opening up in 7-11,

in complete contrast to what's happening in the UK where Banks are

closing branches ,i suppose thats possible though lower wages,and

higher profit spreads here.

regards worgeordie

[fletchsmile]

Lot of different factors at play even within the banks in Thailand themselves. Generalising a few:

 

-The big 4 which are the largest in size have tended to maintain and even increase their branch networks. They still see size and branch network as core strengths to  maintain even though they look at new channels

- Smaller and mid-tier banks have tended to consolidate/ reduce their networks more as they have realised they can't compete on size and branch network. Similar things at play here as in the west

- Digital banking, fintech and other more modern strategies kicking in which will move people away from branches as consumers become more tech savvy. Digital banking penetration is still low but increasing. Banks have strategies in place for this. Some are natuarlly more innovative than others and some little choice but to try this route if they don't have other competitive advantages. Cash/ traditional transactions as mentioned by OP are still very much a large part of Thai society

- Yet at the same time there are up country areas with potential to grow as they gain in wealth or historically branches were fewer. This bit is different to mature markets in the west and where Thailand is still developing

 

etc etc

 

Believe it or not though there are actually fewer branches new though, than start of the year. Overall it could well have peaked.

 

BOT actually publish stats by region, by bank etc

 

https://www.bot.or.th/English/Statistics/FinancialInstitutions/Pages/StatNumberofBranches.aspx

Edited December 21, 2016 by fletchsmile

[Suradit69]

Banking in places like the US is increasingly automated in one way or another. I've had an account at my bank in the US for at least 40 years (although they have been bought out or merged twice during that time). I've probably walked into an actual bank branch of theirs 4 or 5 times in total and the last time was at least 20 years ago.

 

In Thailand a lot of walk-in business takes place and counter clerk salaries are minimal.

 

The same could be said of 7/Elevens that are seemingly over-populated. There are at least 5 7/Elevens plus one Family Mart and two grocery stores in a couple minutes walk from where I live ... but all of them seem to have decent customer traffic.  Obviously they're profitable even if the rate of return isn't spectacular. Even in Thailand a business that loses money each month will close, although with bank branches it's probably less straight forward in analyzing the profit gained against cost of operation for each branch.

 

Kasikorn is probably intent on maintaining and increasing market share. Sometimes the long-term gain from doing that outweighs short-term costs. Considering the state of banks in farang land and some of the scandals and literally billions (dollars, Euros, pounds) in fines imposed on them, they leave a lot to be desired when considering business practices.

 

 

 

Edited December 21, 2016 by Suradit69

[elgordo38]

Don't ask them for a couple million bahts. They will give you a bushel basket full of money unless you ask for a cashiers check beforehand. Amazing. If I walked into a bank in the West they would tell me to come back in a week and have my own security. 

[wonder6281]

They should build up their resources in customer service. 3 weeks waiting for an international transfer without any success or feedback is a joke.

[Suradit69]

1 hour ago, wonder6281 said:

They should build up their resources in customer service. 3 weeks waiting for an international transfer without any success or feedback is a joke.

The troubleshooter for a transfer that has gone missing should be the sending bank. If you're waiting for a transfer from outside Thailand to your Thai bank account, it's the sending bank that should trace it and give you some documentation.

[Suradit69]

2 hours ago, elgordo38 said:

Amazing. If I walked into a bank in the West they would tell me to come back in a week and have my own security. 

 

When you say "a bank in the West" are you speaking of some place that actually exists or are visions of sugarplums dancing in your head during the holiday season?

 

 

Edited December 21, 2016 by Suradit69

[elgordo38]

9 minutes ago, Suradit69 said:

 

When you say "a bank in the West" are you speaking of some place that actually exists or are sugarplums dancing in your head during the holiday season?

Oh yea of little faith yes the West where the sun sets. I am not a festive person but well a fun person. I feel that Christmas has been hi-jacked by merchants rubbing their hands like my avatar. They are in such a hurry to sell people junk burning their plastic in the process. Junk that they hope will be on the curb next Christmas as all the wonderful new gadgets are rolled out the and the process repeats itself. We live in a wash rinse dry cycle world. So endeth the first reading. Your name does not ring a bell so may our paths cross again in merriment. 

[Khon Kaen Dave]

When i was in the states,i was drawing some dosh,when a guy in a mask walked in and said to the teller.

"Stick your hands up,ya bum"

[Deepinthailand]

10 hours ago, worgeordie said:

Yes there are Banks everywhere in Thailand, even opening up in 7-11,

in complete contrast to what's happening in the UK where Banks are

closing branches ,i suppose thats possible though lower wages,and

higher profit spreads here.

regards worgeordie

Can't really compare uk to Thailand in the case of banks a massive %of customers in UK banks use only internet or phone where as Thailand is a massive %the other way hence more branches

[Grubster]

7 hours ago, wonder6281 said:

They should build up their resources in customer service. 3 weeks waiting for an international transfer without any success or feedback is a joke.

I believe they are one of few countries that does not use the routing number system and stubbornly stick to their swift number system. I can't think that that is good for business.

[lkn]

12 hours ago, Grubster said:

I believe they are one of few countries that does not use the routing number system and stubbornly stick to their swift number system. I can't think that that is good for business.

 

Huh? Isn’t routing numbers unique to the U.S.? The rest of the world uses SWIFT / BIC.

 

As for the parent poster, if you are waiting for an incoming transfer, it may be held up due to regulation. I had this happen with a >$50,000 transfer. They had tried to contact me, but my Thai number was not active, and the address they had was somewhere I stayed long ago (they actually did contact the owner of this place to ask if he knew my whereabouts).

 

I have since given them my email address, and now I get an email for every incoming international transfer, which also has details about fees and exchange rate.

 

Transfers from the U.S. (Wells Fargo) often take about 12 hours. Meaning I initiate the transfer in the evening and see the money the next day.

 

This is with Krungthai, a bank that I have previously endorsed in this thread, only to be asked why anyone would use them:

 

[Mr0Yallow]

18 hours ago, Suradit69 said:

The troubleshooter for a transfer that has gone missing should be the sending bank. If you're waiting for a transfer from outside Thailand to your Thai bank account, it's the sending bank that should trace it and give you some documentation.

I have a friend here that works internet and is paid from USA via Payoneer. They really suck, she went to a SCB branch to male a withdrawal by Mastercard, the bank started to process the wd, then the teller told her that Payoneer cancelled the payout. Payoneer said she had to wait 30 days for SCB to release the "authorization" I say it is a scam to hold her $1000 for a month. I have never had to wait more than a week for an auth to clear/cancel.

[Grubster]

31 minutes ago, lkn said:

 

Huh? Isn’t routing numbers unique to the U.S.? The rest of the world uses SWIFT / BIC.

 

As for the parent poster, if you are waiting for an incoming transfer, it may be held up due to regulation. I had this happen with a >$50,000 transfer. They had tried to contact me, but my Thai number was not active, and the address they had was somewhere I stayed long ago (they actually did contact the owner of this place to ask if he knew my whereabouts).

 

I have since given them my email address, and now I get an email for every incoming international transfer, which also has details about fees and exchange rate.

 

Transfers from the U.S. (Wells Fargo) often take about 12 hours. Meaning I initiate the transfer in the evening and see the money the next day.

 

This is with Krungthai, a bank that I have previously endorsed in this thread, only to be asked why anyone would use them:

 

You may be right about the routing numbers but I know that I can have my pensions automatically deposited in nearly all countries except Thailand using my US routing number.  I can use the Bangkok bank New York but with all the fees it is equal to just using my ATM card here to get 30,000 baht at a shot. So I pay about 14,000 baht per year to draw 1.8 million baht.  Probably better than having it in a bank here anyway.

[lkn]

41 minutes ago, Mr0Yallow said:

Payoneer said she had to wait 30 days for SCB to release the "authorization" I say it is a scam to hold her $1000 for a month. I have never had to wait more than a week for an auth to clear/cancel.

 

I have waited something like 4 months for an authorization to clear. I have also once had a hotel that had authorized an amount as a deposit take active steps to get it cleared (perhaps it would have cleared, had I been patient).

 

Both incidents with my Thai VISA/debit card. A hotel clerk once indicated to me that there was an issue with authorization and the Thai VISA/debit cards, but I have been unable to find any concrete information about this.

 

Definitely I do not think that SCB is participating in a “scam” to hold your friend’s money, something is just “broken” about this system.

[Sooo Upto Me]

Coz it's all a about the money over here.  ?????

[Mr0Yallow]

On 12/22/2016 at 0:55 PM, lkn said:

 

I have waited something like 4 months for an authorization to clear. I have also once had a hotel that had authorized an amount as a deposit take active steps to get it cleared (perhaps it would have cleared, had I been patient).

 

Both incidents with my Thai VISA/debit card. A hotel clerk once indicated to me that there was an issue with authorization and the Thai VISA/debit cards, but I have been unable to find any concrete information about this.

 

Definitely I do not think that SCB is participating in a “scam” to hold your friend’s money, something is just “broken” about this system.

No, I didn't say SCB was involved in the scam, it was purely Payoneer. I googled it and discovered they do this deal with people world wide.  and it seems always with amounts around $1000.00 US. I am glad I have my payments directly deposited to a reputable US Bank, (with branches in BKK)