Siam Commercial Bank has seen remarkable success with its digital banking strategy with Human Touch, unveiling its 1Q24 operational results marked by sustained growth on all fronts. The Bank is poised to go even further by spearheading the evolution towards AI-driven banking, leveraging AI technology to revolutionize every facet of its operations. This includes the launch of the Better Brain model, which integrates AI into product development, service linking and operational improvement. In a revolutionary move, the Bank introduced three innovative AI solutions, using the AI underwriting model for full retail loan approval, and introducing the AI advisory chatbot and My Alert service for wealth management digital. Continuing its commitment to technological excellence, the Bank is dedicated to improving its capabilities to offer superior quality services to its customers. Underlining its role as a digital bank that resonates emotionally with its customers, the Bank is committed to its mission of transitioning towards a fully-fledged digital entity, targeting 25% digital revenue by 2025.
Mr. Kris Chantanotoke, Managing Director of Siam Commercial Bank, unveiled the bank’s implementation of the Digital Bank with Human Touch strategy, aiming to establish itself as the leading digital bank in wealth management while providing seamlessly integrated service experience across all channels for its customers. In the first quarter of 2024, the Bank achieved operating results that closely match its objectives in all respects. Notably, it recorded a net profit of 13.2 billion baht, an increase of 13.7% compared to the corresponding period last year. At the same time, it maintained a commendable cost-to-income (C/I) ratio of 37.7%, return on equity (ROE) of 12.7% and achieved digital revenue growth at 9.9%.
In the evolving financial services landscape, customer centricity is paramount for banks to remain competitive. Fast, personalized responses to customer financial needs are imperative. Thus, SCB is accelerating the development of its services to establish itself as a full-fledged digital bank, thus acquiring a competitive advantage in an increasingly saturated market. This year, Siam Commercial Bank is prioritizing the use of AI technology to power its banking operations across all dimensions. From product development and service integration to improving organizational operational efficiency and strengthening the technological acumen of its staff, the Bank is strategically progressing according to the Better Brain model. This model harnesses the power of AI and machine learning to cultivate customer-centric services, delivering hyper-personalized experiences tailored to each customer, ensuring convenient access through the Bank’s ubiquitous digital platform and, term, improving overall customer satisfaction.
“Through these efforts, the Bank has successfully introduced three pioneering AI innovations poised to revolutionize customer experience. Among these innovations is the use of the AI underwriting model for full approval of retail loans, including housing loans, rental loans and small entrepreneur loans (SSME). This advancement streamlines the approval process, allowing customers to receive decisions more quickly compared to traditional methods. Additionally, integrating AI and machine learning to assess customer risk based on comprehensive data enables the Bank to determine appropriate interest rates, improve customer experience and promote responsible lending practices.
Mr. Kris highlighted the Bank’s commitment as a leader in wealth management, unveiling improvements to the investment experience through digital channels powered by AI. This aligns with the growing usage of SCB EASY, which saw a remarkable 23% year-over-year expansion. It has been observed that customers are currently showing strong interest in purchasing insurance through digital channels, with take-up rates up to five times higher than traditional methods. Additionally, digital investment activity has seen a notable increase, with transactions occurring up to seven times more frequently than non-digital channels. This trend highlights the evolving preferences of clients who are increasingly turning to digital platforms as their preferred investment channel. In response to this trend, AI is being leveraged to enrich wealth management experiences tailored to the digital preferences of the new generation. The Bank has embarked on the development of the AI Advisory Chatbot service on the SCB Connect channel, facilitating interactive access to fundamental fund information. Customers can easily query the desired funds, allowing chatbots to provide natural responses. Additionally, the Bank launched the My Alert service, which provides hyper-personalized investment notifications tailored to individual customer needs. The service leverages AI to monitor individual investment portfolios around the clock. This service has sophisticated capabilities for data processing, analysis of existing portfolios, market movements by the SCB CIO and opportunities for investment, providing timely notifications to customers through various channels including SCB Connect, SCB EASY and Personal Financial Advisors. These two services are poised to redefine the wealth management landscape, delivering unprecedented client experiences.
Simultaneously, the Bank has implemented AI technologies to streamline work processes across different departments, thereby improving overall operational efficiency. By leveraging AI and other advanced technologies, the Bank aims to automate tasks, thereby reducing manual interventions, ensuring fast and accurate results, saving time and reducing management costs. Additionally, a comprehensive training program has been put in place to equip employees with the necessary knowledge and technical skills, thereby enabling them to effectively navigate and contribute to the Bank’s AI-focused initiatives.
“The Bank strongly believes that AI will spearhead a new S-curve, propelling us towards our vision of becoming a fully-fledged digital bank. This transformative technology is poised to propel digital revenue growth to 13% by the end of this year, with a goal of reaching 25% by 2025. This strategic focus on enhancing digital capabilities is crucial to achieving a balanced income structure conducive to sustainable growth. while strengthening our position against emerging competitors leveraging similar technological advancements. This strategic approach ensures our ability to adapt to changing market dynamics and positions us as a formidable competitor in the digital banking landscape. With an unwavering commitment to our digital banking strategy with Human Touch, we remain committed to touching the hearts of our customers and delivering exceptional experiences,” concluded Mr. Kris.
