Banthoon Lamsam, chairman and chief executive officer of Kasikornbank, said yesterday that the new challenges for the bank were the grooming of younger people and attention to cost effectiveness to deal with the rapid changes in technology and the global economy.
KBank had to set up Kasikorn Business Technology Group (KBTG) because information technology will help strengthen the banking business, but the DNA of an IT man is unlike that of a banker, so the bank has to have IT people to staff the new unit.
IT is an important issue, so this will have to be overseen by one of the bank's co-presidents, he said.
Teeranun Srihong, a president of KBank, is also chairman of KBTG.
The bank has appointed Kattiya Indaravijaya as the third president.
People are the key point for KBank because the banking business has faced several challenges, so the bank has to prepare younger people to succeed in what the existing management team is doing, Banthoon said.
Human resources are the greatest cost to the bank, so it has to manage this cost to be more effective. Recruitment is not always done automatically when an employee retires.
KBank is going "AEC+3" (the Asean Economic Community plus China, Japan and South Korea). Asean is a large market, so KBank needs to have people to pursue the Asean opportunity, he said. The bank has to prepare people to support its AEC+3 vision.
Last year, the bank formed a world business division to provide clear financial services to Thai clients in the AEC and the other three countries.
Even though China is witnessing its economy slowing down, the bank believes this is short-term. KBank has applied to become a local bank in that country and hopes for approval this year.
The bank will set up the head office of its planned locally incorporated bank in Shenzhen.
KBank expects to play an even greater role in promoting trade, investment, financial exchange and friendship between China and Thailand, particularly between Shenzhen and Bangkok.
Another challenge for KBank in the next few years is CEO succession. This is the very challenge for an organisation with a successful CEO.
The next leader must be a younger person who can ride the rapid changes in the banking industry, Banthoon said.
KBank recently switched its shareholding in Muang Thai Group Holding Company, a holding company for Muang Thai Life Assurance and Muang Thai Insurance, from indirect to direct because insurance and banking in the current era are the same financial services and running insurance and banking at present needs the same strategy.
KBank over the next three years will make its IT more flexible to respond to the financial world, he said.