The two largest commercial banks recorded higher than expected transactions from appointing Thailand Post as a banking agent.
Deposit and bill payment transactions for Siam Commercial Bank (SCB) and Kasikornbank (KBank) at Thailand Post banking agents surpassed their expectations, though the services have been available for less than a year, said Samorn Terdtampiboon, president of Thailand Post.
KBank, the country's second largest lender by assets, appointed Thailand Post as its banking agent last August. As of Jan 17, KBank recorded a combined 94,000 financial transactions, surpassing the target of a few hundred transactions a day.
Deposits are the most popular service at the agent, she said.
SCB, the country's largest bank by assets, has offered the financial services through Thailand Post since Dec 25 and the number of its banking agent transactions also exceeded the target.
The Bank of Thailand amended banking agent regulations to enable local banks to offer more financial services to customers through banking agents, a channel that allows banks better access to remote areas, with cheaper operating costs than opening branches.
Under the amended regulation, banking agents can offer financial services including money deposits, transfers, withdrawals and payments, but loan distribution services are still not allowed. Banking agents are able to provide cash withdrawals of up to 5,000 baht per transaction and 20,000 baht per day per customer.
Thailand Post is also looking to partner with Krungthai Bank (KTB), the country's fourth largest bank, and the deal is expected to be finalised in the near future, Mrs Samorn said.
The partnership with KTB would boost banking transactions at Thailand Post, she said.
Thailand Post plans to offer additional financial services, including opening deposit accounts and cash withdrawals using its banking agent licence.
Before adding to the service range, Thailand Post wants to study the IT connectivity between Thailand Post and banks as their systems differ.
"We also need to ensure security systems for more complex financial services to build up consumer confidence," she said.
With more than 900 Thailand Post branches across the country, including remote areas, the added services would provide more convenience to consumers to make bank transactions.
KTB president Payong Srivanich said the bank expects to appoint Thailand Post as its banking agent this month.
