TMB Bank has streamlined its top-down command structure by removing 10 levels of hierarchy to improve productivity in the digital era.
Under a streamlining effort, the bank's command hierarchies have been reduced to six layers, starting from senior tellers to the chief executive, said Piti Tantakasem, the chief executive.
The bank plans to remove one more layer in the next step to improve productivity, he said.
TMB managed to develop a new mobile app within five months recently, compared with one year in the past.
More advanced technology allows the bank to revamp the organisational structure, said Mr Piti.
"We cut several complicated command layers and replaced the positions with job heads. A flat organisation leads to more agility, productivity and efficiency. Hopefully, it will cut overall operating costs in the long run," he said.
TMB, the country's seventh-largest lender by assets, has concentrated on ATM-sharing with other banks rather than installing new machines for several years under the "Make a Difference" concept.
Financial products and services were also launched under a no-fee theme, in line with the business strategy.
Mr Piti said the bank's total brick-and-mortar branches have fallen to 430 nationwide from around 500 a decade ago.
The number of branches will decline a bit as opening new outlets will almost offset branch closures, mergers and remodelling to keep up with changing consumer lifestyles amid the digital trend.
The bank is not targeting a specific number of branches, but under digitisation, around 400 outlets are reasonable, he said.
TMB is also studying the banking agent model and is interested in providing the service through convenience stores.
TMB offers money deposits through Thailand Post and the Government Savings Bank.
To extend the banking agent service scope to cash withdrawals, the bank needs to adopt electronic know-your-customer (e-KYC) rules first to strength the security system.
The Bank of Thailand recently said it will allow banking agents to offer money withdrawals, and retail and individual payments, in addition to money deposits, transfers, and bill payments. The new service is expected to be available from next month.
Regarding its 2018 business plan, TMB set its loan growth target in a range of 8-10% based on the assumption the country's GDP will expand 4%.
The bank plans to enlarge its small and medium-sized enterprise (SME) business segment to balance its loan portfolio. Its loans outstanding amounted to 643 billion baht at the end of last year, of which 40% were corporate loans, 29% were retail loans, 17% were medium-sized enterprises, and 14% were small enterprises.
The bank's non-performing loans (NPLs) have been steady since the fourth quarter of last year, while the economic recovery will support SME loan expansion, said Mr Piti.
TMB expects to keep its NPL ratio within 2.3-2.5% by the end of this year, similar to the 2.35% posted last year. It set loan loss reserves on par with last year's 9 billion baht in line with loan growth.
TMB shares closed Monday on the SET at 2.98 baht, up eight satang, in trade worth 499 million baht.
