Thailand Post partner with bank to get rural e-commerce customers – Nikkei Asian Review

BANGKOK– Clients of Thai loan provider will have the ability to deposit cash into their accounts at the country’s 1,300 post workplaces, after the company named Thailand Post as an agent for its banking services.The state-owned postal group began the preliminary phase of the partnership on Tuesday at 964 post workplaces. Money withdrawal also will be readily available by next year.Kasikornbank, one of Thailand’s 4 biggest lenders, aims

to reach rural locals who have no regional bank branch readily available. The bank also is aiming to much better serve online merchants and buyers who often visit the post office to send or get parcels.Accessing Thailand Post’s network, which reaches even the most remote locations of the nation, lets Kasikornbank save on financial investments to expand its physical presence and rather allocate more loan to digital banking.Kasikornbank has around 1,000 branches, so its physical network in effect will more than double once all 1,300 Thailand Post areas come on board.

The bank likewise runs 11,792 ATMs across the country. “Consumers can receive their parcels at the post workplace, take a look at the products and pay the merchant on the spot by transferring loan into the merchant’s checking account,”Kasikornbank President Patchara Samalapa told reporters on Monday.”In the future, the banking deal may even occur at the doorsteps of the consumers’houses when the parcel is delivered,”Patchara said.”There are many chances with Thailand Post to boost our customers’total online shopping experience.”Though the federal government and lending institutions are promoting digital banking, money stays the dominant type of payment in Thailand and a physical existence still matters for banks.The collaboration also assists Thailand Post stand out as competition in the parcel shipment market magnifies. Lots of logistics business large and small have actually emerged in the previous several years, banking on the e-commerce trend.

Thailand’s e-commerce market is proliferating thanks to small companies and individuals selling online through social networks.Parcel shipment has ended up being Thailand Post’s biggest income generator, representing nearly half of its profits. The postal business handled 13.7 million parcels in 2017, up 7%from a year earlier.The state-owned enterprise currently functions as an agent for seven smaller sized banks. But President Smorn Terdthampiboon said the partnership with a major lender like Kasikornbank will bring in more customers and improve awareness of the [email protected] service.”It looks appealing ahead since banks will likely cut their investment in branch growth, while Thailand Post … has the potential to react to their needs thanks to our substantial network,”she said. The postal business is in settlements with other big banks, she included. 1,300 post workplaces, Thailand Post likewise has about 3,000 certified agents, however they are not yet all set to handle banking services, according to the president.Thailand’s central bank modified policies previously this year to let commercial loan providers designate banking representatives that can provide deposit and withdrawal services on their behalf. CP All, the operator of Thailand’s 7-Eleven stores, is also thinking about becoming a banking agent.

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