Banks Gradually Close Branches, Nearly 200 in One Year
“Commercial banks” continue to reduce their branches, revealing that nearly 200 branches have been closed in just one year. “Siam Commercial Bank” led the way with 88 closures, followed by “Krung Thai Bank” with 79 branches, while “Kasikorn Bank” closed around 30 branches. Only “Thai Credit Retail Bank” saw an increase of 91 branches.<\/h2>
Statistics from the Bank of Thailand (BOT) regarding the 'branches' of commercial banks indicate that these banks have been continuously reducing their branches, both compared to the same period last year and since the end of 2019. It was found that, compared to the same period last year, the total number of commercial bank branches and service points in the country decreased by 179 branches, bringing the total down to 6,672 branches from 6,851 branches. Compared to the end of 2019, there was a reduction of 137 branches from 6,809 branches.<\/p>
Specifically, the bank that closed the most branches in the past year was Siam Commercial Bank, which reduced its branches by 88, bringing the total to 954 branches from 1,042. Compared to the end of 2019, Siam Commercial Bank has closed 80 branches. Next is Krung Thai Bank, which reduced its branches by 79, bringing the total to 1,079 branches in May, down from 1,105 branches in the same period last year. Compared to the end of 2019, Krung Thai Bank has reduced its branches by about 26.<\/p>
Kasikorn Bank also saw a reduction of 30 branches, bringing its total to 889 branches from 919. Compared to the end of the previous year, Kasikorn Bank has closed 5 branches.<\/p>
However, there is only one commercial bank that has increased its branches compared to the overall system, which is Thai Credit Retail Bank, with an increase of 91 branches in the past year, bringing its total to 516 branches. It has not reduced any branches since the end of last year.<\/p>
Mr. Thaveelap Rittaphirom, Assistant Managing Director of Bangkok Bank (BBL), stated that the bank has reduced some branches recently, but it is relatively minor. According to BOT data, the bank currently has 1,137 branches, down only 21 branches in the past year and down 11 branches from the end of the previous year.<\/p>
Nevertheless, he believes that even though consumers are changing their behavior and turning to digital banking more, bank branches are still necessary and are being used at a high level. Especially during the COVID-19 pandemic, branches played a crucial role in assisting borrowers with their problems.<\/p>
There are still some customer segments that require branches, so it is believed that even though the trend of branches may decline in the future, it will not decrease dramatically or quickly, as it needs to align with consumer behavior.<\/p>
In the near future, we may see more changes in branch formats, particularly the consolidation of some branches. However, these changes need to be carefully considered.<\/p>
In the future, we may also see an increase in financial services provided through banking agents or financial institution representatives to meet consumer needs, as discussions are currently underway to open up more banking agents.<\/p>
“Today, we can see that banking agents can perform a wider variety of transactions and can facilitate transactions to others. For example, in addition to depositing money, banking agents can also be used for various identity verifications. Therefore, having banking agents is to better serve bank customers, allowing them to avoid visiting branches. However, branches are still necessary because we see that when something happens, customers still turn to the bank for support. Thus, having branches can help support customers.”<\/p>
