Bangkok--1 Apr--KASIKORNBANK
KASIKORNBANK introduces K-Value Chain Solutions which, for the first time in Thai banking industry, will take care of customer businesses from upstream to downstream, reducing operating costs up to 30 percent, working time by 2 hours per day and enhancing operational efficiency. The Bank provides pilot service for PTT Group and its business partners and plans to penetrate seven major industries of Thailand with sales of 13 trillion Baht in combination. KBank aims to gain 30 percent of market share in this customer segment within three years.
Mr. Krisada Lamsam, Senior Executive Vice President of KASIKORNBANK, said the Bank has consistently provided K-Supply Chain Financing to business community and become number one market player with 40 billion of loans granted to more than 62 supply chain businesses. The Bank has consistently studied and analyzed corporate customer demand and found that in assisting customers to achieve a sustainable growth, the entire business network of customers must be provided with necessary and diverse services apart from traditional loan products for ultimate efficiency in business undertakings. Thus, KBank introduces innovated service by launching K-Value Chain Solutions, a new business platform, for the first time in Thai banking industry, and provides pilot service to PTT Group.
K-Value Chain Solutions are new business platform that focuses on service providing for the entire business chain, from upstream to downstream, consisting of major sponsors, dealers/suppliers and end users. The entire business empire is studied and offered necessary and relevant services in order to completely respond to customer requirements in all dimension as follows:
Credit products are offered to accommodate the necessities of each unit of the customer’s business chain. The Bank’s calculation of lending rates will take into account the business as part of the entire chain. These businesses will be given lower-than-normal rates, i.e. K-Supply Chain Financing, K-Factoring, K-Trade Finance. Thus, corporate customers which are part of the business chain will be able to reduce funding costs by approximately 30 percent.
Non-credit products including liquidity management and cash management, i.e. payroll service, payment service, etc. will assist customer business chain to operate more efficiently in terms of operating cost and time. The Bank will help set an electronic documentation system which will reduce transaction costs by 29 percent.
Non-financial knowledge will be provided to support operations in each unit under the chain. For example, trainings and seminars about industrial directions will be provided for large corporate business, or management know-how will be given to customers that are part of the business chain in order to strengthen their operations.
Mr. Krisada added that KBank aims to provide K-Value Chain Solutions for seven key industries with long and complicated business network that match all customer segments of the Bank namely, petroleum and petrochemical, wholesale-retail trade, construction material, transportation, foods and beverage, automotive and parts, and gold business. These seven industries have a combined business value of 13 trillion Baht. KBank aims to get 30 percent market share, up from current 17 percent, over the next three years with annual income growth of 30 percent. The Bank also aims to be main operating bank for the entire business chain of customers.
Business chain that is supervised by K-Value Chain Solutions will benefit from three aspects. First, the business can reduce costs by up 30 percent in terms of lower funding costs and a decrease in transaction expenses. Second, working period will be reduced by 2 hours per day as documentation is systematically processed via electronic channel. Last, staff members will be happier with shortened office hours and more free time for their family or private life, leading to improved Happy Index of business manpower, a crucial factor for all organizations. Customers in each customer segment as part of the business chain will operate with higher efficiency. As a result, overall business chain will perform more efficiently leading to a steady business network growth.
Dr. Prachaya Phinyawat, PTT’s Chief Operating Officer of Downstream Petroleum Business Group, said PTT Group has placed emphasis on taking care of business partners as well as customers for a sustainable growth of business. PTT and KASIKORNBANK have seriously studied the need of both business partners and customers of the entire PTT’s value chain, and found more precise and complete solutions of K-Value Chain Solutions to take care of PTT’s business partners than traditional credit products. For example, the Bank provides business cards for dealers for payment at gas stations in place of cash, reducing dealers’ funding cost, or interest for fuel payment, by 24 percent. Overall transactions take less time by 2 hours per day.
K-Value Chain Solutions also strengthens business chain between PTT and business partners as they enhance business channel for these business partners to directly benefit from dealing business with PTT. The solutions boost efficiency of PTT Group’s administration with transaction process enhancement that speeds up business undertakings, reduces costs, better manages risks and significantly reduces staff working period. PTT Group still strives for service enhancement in order to provide convenience for business allies and customers of business partners. Ultimately, retail customers of PTT will also benefit from this enhancement.