Siam Commercial Bank PCL : SCB Transformation

Transformation plan will:

• Boost investment intechnology infrastructure by 30-40 billion baht during the next 3 years whilstdeepening customer relationships.
• Expandcustomer base among Gen Y, Mass Affluent and SME customers.
• Deliver new experiencethrough increasing service points that match the lifestyles of customers in each location.
• Develop people to keep ahead oftechnology and become trusted financial advisors.

Bangkok (24January2017) - Siam Commercial Bank, led by Mr. Arthid Nanthawithaya, President and CEO, announced its 2016 satisfactory operating result, with a profit of 47.6 billion baht, an increase of 0.9% from 47.2 billion baht in 2015. Mrs. Kittiya Todhanakasem, Chief Financial Officer, attributed the profit growth to the Bank's proactive strategy in deposit cost management and increase in net fee and service income. In 2017, SCB will continue to pursue its new and ambitious 'SCB Transformation' plan to become 'The Most Admired Bank', with an initial emphasis on fully communicating the strategy to employees at all levels.

In 2017, SCB will ramp up its digital banking services and platforms, focusing on Gen Y, mass affluent and SME clients. The Bank will offer products that match clients' needs in response to new expectations and changes in life style. SCB will increase its investment in basic technological infrastructure by an additional 30-40 billion baht during the next three years in order to accommodate digital platforms and use Business Intelligence technology to increase precision with information from both internal and external sources. Using Big Data technology, SCB will analyze customer behavior and needs in greater depth and detail.

As for the Bank's emerging embrace of FinTech, SCB plans to expand its investment in innovation via its new subsidiary, Digital Ventures. The Bank envisions that this plan may include investments in Europe and the United States. SCB expects that Digital Ventures will increase the Bank's access to start-up know-how and new innovations, leveraging this asset to develop new products and services.

Siam Commercial Bank'sPresident and CEO, Mr. Arthid Nanthawithaya, said, 'As new technology increasingly drives changes in consumer behavior, the strengths that SCB relied on in the past might not be enough to ensure our future growth. Changes in the competitive environment are already having an impact, such as the decline in financial transaction fees and a shift in client expectations for branch services. We aim to adapt to such new conditions in an optimal way.'

SCB believes that the implementation of digital technology must be done in tandem with reinforcing the customer relationships and trust that are provided by staff. With this in mind, the Bank plans to add more service points, which will be tailored to suit the lifestyle of customers in each location. To deliver the best customer experience at bank branches, SCB is separating service from sales, which will increase convenience and speed, and give clients better access to the particular financial services they need. Business units within the Bank are working in cross-sectoral collaboration to deliver solution product package and services that will fully meet customer requirements today.

'2017 will be the year that SCB delivers a new customer experience. This means new service platforms for mobile banking. We will also support the government's National e-Payment project by increasing PromptPay registrations among SCB bank customers, which has already surpassed 2 million accounts, and by joining hands with partner banks to establish a nationwide electronic data capture (EDC) network. At the same time, SCB staff are committed to developing in-depth relationships and confidence with customers, helping ensure that our digital services are rendered with 'human touches'. We have redesigned our branches in terms of both the physical facilities and service approach, as can be witnessed at our pilot branch at Bangkok's Lat Phrao Soi 59,' said Mr. Arthid.

In terms of financial goals for 2017, SCB plans for credit growth of about 4-6%, while keeping NPLs at below 3%. Target industries include infrastructure projects, food and beverage, construction and trading. SCB's business will expand in parallel with customers' supply chains. In addition, the Bank will focus on increasing its market share in personal loans and credit card lending. SCB's strength in home and auto loans will continue to increase. The Bank aims to increase non-interest income by 3-4%, focusing on foreign exchange, trade finance and export, investment banking, capital markets and life insurance.