Krungthai Bank (KTB), the country's fourth-largest bank by assets, is making a belated push into the burgeoning mobile banking business by preparing to introduce a pure-mobile banking app by year-end.
Krungthai Next, KTB's full-scale mobile banking app, will initially focus on banking transactions, including funds transfers, top-ups and bill payments, while other financial features such as virtual cards, digital lending and mutual fund transactions will be launched later, said president Payong Srivanich.
The bank introduced internet banking on its KTB netbank platform, which has around 5 million users.
After the inauguration of its pure mobile banking app, the bank will retain KTB netbank service.
"Even though KTB still lags behind our industry peers on mobile banking service, we aim [for the number of Krungthai Next users] to shoot up the first year after its launch," Mr Payong said without revealing a precise target.
Apart from KTB netbank, the bank has more than 2 million merchants using QR code payment with their accounts at KTB. It also offers online banking services for lower-income earners in compliance with several government schemes.
The bank has 30 million deposit accounts, of which 30-40% could use the Krungthai Next app, he said. KTB said it will spend more time to shift offline users towards the online channel, aiming for a faster pace of growth.
KTB yesterday signed a memorandum of understanding (MoU) with King Mongkut's Institute of Technology Ladkrabang to jointly develop innovation under the Next Lab programme, including KMITL's financial management services through the KTB digital platform.
In related news, Mr Payong said KTB will follow suit if the Bank of Thailand raises its benchmark interest rate.
The bank, however, forecasts that the Monetary Policy Committee will stand pat on its rate at 1.5% until year-end, he said.
KTB's prime lending rates (minimum lending rate, minimum overdraft rate and minimum retail rate) sit a quarter percentage point below those of banking peers, giving consumers the opportunity to access formal financial sources in accordance with state policy.
KTB shares closed yesterday on the Stock Exchange of Thailand at 19.50 baht, unchanged, in trade worth 478 million baht.
