BANTHOON LAMSAM Chief Executive Officer Kasikorn Bank INTERVIEW

UBBED the ‘best bank in Asia for 2005’ in a survey by the influential Euromoney magazine, Kasikorn Bank (Kbank) has a reputation for innovation, and is credited with the introduction of a long line of new banking services in Thailand.

Recently, it has been consolidating its holdings in five subsidiaries. According to Banthoon Lamsam (INTERVIEW), Kbank’s Chief Executive Officer, this reflects Kbank’s move toward becoming a universal bank, offering within the premises of its branches a broad range of consumer, commercial and corporate banking services.

He explains, “Our aim is to be a comprehensive financial service provider now that banks are allowed to get into the other areas of financial services, like securities and asset management, which in the past we were not allowed to do.

“We not only have commercial and investment banking, but also the securities business, asset and mutual fund management, leasing, etc. Now we have all of that under one roof.”

One of the largest commercial banks in Thailand, Kbank recently celebrated its 60th anniversary. Its domestic network includes almost 500 branches, 1,186 ATMs, 15 foreign exchange offices, and 15 international trade centers throughout Thailand. Overseas, it has branches in Hong Kong, Los Angeles, the Cayman Islands, and Shenzhen, China.

Mr. Banthoon says lessons have been learned from the Asian financial crisis. “The banks are generally stronger. They are not taking risks like before, the risks that led to the collapse.

“Now they are facing different kinds of challenges: a more rigorous kind of risk management that is more complex, the opening up of the financial markets, the competition of international players, the issue of change in the financial services environment, and the increasing importance of technology.”

Mr. Banthoon sees technology as the key to survival for Thai banks. “In general, the banks are of world standard, but they are not yet recognized internationally, only locally. If markets open up, foreign banks will have the advantage of more sophisticated IT platforms, which will enable them to integrate financial products faster. If Thai banks do not catch up, then they will have to merge with foreign banks. That is something I would rather not see happening.”

He says that if banks want to really make money, they have to innovate and offer new products. “They have to be able to relate to businesses that generate key income rather than just rely only on lending.”

Outside Thailand, Kbank is looking at the possibility of doing some small scale lending in China, where there are relationships with the business sector in Thailand.

Mr. Banthoon says, “I would imagine that all the banks are working to expand out of Thailand, but the bulk of the work of Thai banks is still in Thailand. To defend your turf, and to find time go out in the region is not easy. You have to fix your own house first.”