Krungthai Bank is a leading financial institution in Thailand with the mission to provide a better life for all Thai people and the vision of “Growing Together for Sustainability”. Due to the Covid-19 situation, Thailand has experienced an economic downturn over the past three years. Thus, Krungthai Bank’s role in helping Thai people achieve sustainable development and better lives, as well as its role in supporting the government in implementing the measures as the only state-owned commercial bank in Thailand, has become even more vital. . Thanks to its outstanding contributions to economic, social and environmental development, Krungthai Bank won the Best CSR Bank Thailand 2022 award and its CEO, Mr. Payong Srivanich, won the Banking CEO of the Year Thailand 2022 award during the Global Banking & Finance® Awards 2022.
In addition to providing support measures to help its customers affected by the pandemic outbreak, Krungthai Bank has leveraged its technology and digital capability, especially its Pao Tang open digital platform mobile app, to help the government help the people of Thailand during the crisis while being at while leading the country towards the digital economy. The app allows the government to transfer relief money directly to the population in an efficient, timely and transparent manner that is less prone to corruption. Relief programs rolled out through Pao Tang have obviously eased people’s financial burden in daily life and encouraged domestic consumption to boost the sluggish economy and help small businesses survive. One such program that has been hugely successful is the 50/50 co-pay program; its third phase in 2020 generated cash flows of up to 220 billion baht into the economy. The app is also used to help manage Covid-19, for example, it is used as a registration platform for Bangkok’s mass vaccination program and the distribution of antigen test kits.
Along with Covid-19 relief, the app also offers financial services that help improve the financial health of its growing 34 million users. Savings and investment options, such as government savings bonds, corporate bonds, and gold trading, are offered digitally on Pao Tang, allowing people to access and benefit from services in a safer and more convenient way. State-of-the-art technology and strategic partnerships allow the bank to offer a wide range of financial services and beyond, which contribute to developing the quality of life of people by giving them equal, transparent and efficient access to financial services, by accelerating digital adoption and inclusion, as well as improving digital literacy, which are fundamental for the transition to the digital economy of the future and the sustainable growth of the country.
With a strong sense of corporate social responsibility, Krungthai Bank leverages its core competencies to address environmental and social issues in Thailand and aspires to develop sustainably with all sectors of society. Its flagship CSR project, “Krungthai Go-Local, Grow-Local”, which started in 2019, is a community development project that aims to strengthen the foundations of the community by creating jobs, improving local products and services. of the community as well as the ability to market, and provide it with the financing and other financial solutions it needs to develop. The project is based on the principle of autonomy and the philosophy of the economy of sufficiency, aiming to make the community less dependent on the outside and relying on its potential, its resources, its wisdom, its way of life, its culture and local environment. The bank assumes the role of development facilitator and lets the local people formulate development guidelines and activities, which is a great initiative to get local people’s buy-in and make development more sustainable in the long run. Moreover, believing that good financial health is the foundation of strong and resilient households, communities and economies, the bank helps improve financial literacy and introduces financial technologies to people, so that they can achieve financial stability and therefore a better life. Currently, 11 communities are participating in the project. Another contribution is its green financing programs for environmentally friendly companies and those aiming to reduce their environmental impact. This supports Thailand’s decarbonization goal and the bio-circular-green (BCG) economic model. Since 2020, the Bank has provided credit facilities totaling more than 10 billion baht to environmentally friendly companies.
Despite its past image of a bulky, slow and lagging legacy bank in the rapidly changing digital banking landscape, Krungthai Bank is now at the forefront of Thailand’s digital banking scene, leading the way for innovation not only in the banking sector, but throughout the Thai financial system. This is reflected in the number of users on Krungthai’s digital platforms; over 40 million users on its mobile banking app Krungthai NEXT and Pao Tang, representing over half of Thailand’s population, 1.5 million sellers on the Tung Ngern merchant app and 16 million users on the service Krungthai Connext on LINE app. Behind the success is the bank’s CEO Mr. Payong Srivanich and his strong leadership and vision which won him the Banking CEO of the Year Thailand 2022 award. Realizing that the bank was lagging behind in the field digital, he opted for the “2 banking models” or the dual carrier-speedboat strategy to guarantee the most optimal and fastest results. In this strategy, the carrier protects the traditional banking business while the fully agile outboard explores new opportunities, expands its partnership with public and private organizations, and builds ecosystems to create a new generation of revenue, and thereafter new business models. Following the establishment of Infinitas by Krungthai in 2020, Arise by Infinitas was established in 2021 to source and train tech talent who will work on the mission of transforming and leading Thailand into the digital economy. This shows that Krungthai Bank is very committed to upping its digital game, not only to gain a competitive edge, but also to develop the country’s digital financial infrastructure and workforce from which the country and its people can benefit, both in the fight against the Covid-19 crisis and in the long term.