Siam Commercial Bank (SCB) recently launched four completely automated branches as the growth of electronic transaction channels continues to transform the banking sector.
The project aims to raise customer engagement and keep market share as financial transactions fall at physical branches due to changing consumer lifestyles, the shift to digital platforms and the growth of financial technology startups.
SCB Express's services cover deposits, withdrawals, transfers and bill payments, including coin return functions at virtual teller machines.
Cheque deposits, deposit account openings, ATM and debit card issuance and loan applications are also available at automated branches.
Two or three staff members will remain on hand at SCB Express branches to assist customers, but headcount will shrink once people familiarise themselves with automated financial transactions.
Those four automated branches are so far generating 400-500 transactions per day, compared with 800-1,000 transactions at the bank's high-traffic traditional branches, said Sarat Ruttanaporn, senior executive vice-president and head of the retail segment and branch network.
With the good response from consumers, SCB plans to increase the number of SCB Express branches to 15 by the year-end. Next year, that figure is forecast to swell to 200-300 outlets.
"VTM can serve 85% of customer's banking requirements," Mr Sarat said. "So the bank will significantly ramp up its new touch point model next year."
SCB, the country's third-largest bank by assets, has set aside a 200-million-baht budget for SCB Express branch expansion this year.
For the initial stage of the automated branch roll-out, the bank needs 6-8 million baht per outlet, a figure that will eventually lower as the growth in SCB Express outlets creates economies of scale.
The bank further projects operational costs to decline significantly in the long run.
SCB Express is one among four new branch models the bank is targeting for future growth. The other three are business centre, investment centre and service centre.
Mr Sarut said online transactions in the banking industry saw explosive growth of 121% last year, while transactions made through physical branches fell 8%.
For SCB, banking transactions via ATMs and cash deposit machines represent 57% of total transactions, while mobile banking generate 17% and traditional branches account for the rest.
Despite the new models, the bank is thus far not focused on shuttering traditional branches, as customers still visit them to conduct financial transactions.
SCB has 1,170 traditional branches nationwide.
SCB shares closed yesterday on the Stock Exchange of Thailand at 148.50 baht, up four baht, in trade worth 3.69 billion baht.
