KTB banks on more debit-card business
Krung Thai Bank (KTB) hopes to expand its debit-card business via its recent reduction of the annual fee from Bt150 to Bt100 and an upcoming marketing campaign, said its senior executive vice president Sahas Treetipabut.
He said the bank had lowered the fee by Bt50 two months ago and now planned to launch a marketing campaign to promote the debit card late this month or early next. Krung Thai Bank's strategy is line with the trend identified by Somboon Krobteeranon, country manager of Visa International Thailand, who said that debit-card issuers were likely to cut their annual fees to be more competitive with credit cards. Meanwhile, the international card service provider relaunched its Visa debit card with a Bt40-million marketing campaign for this year. Participating in the promotion are eight bank issuers, including KTB. "We expect to increase the debit card base to one million cards by the end of this year from around 600,000 cards currently. And this will be increased to three million cards over the next few years," Sahas said. Next month, the bank will transfer back to its own operation the management and marketing of its debit card business from its subsidiary, Krungthai Card Plc. Since Krungthai Card was set up several years ago, KTB has transferred all its plastic card operations to its subsidiary. The country's largest state-owned bank plans to use a number of strategies for debit-card base expansion as well as to freshen up its marketing of the card. One key strategy is to convert seven million automatic teller machine (ATM) cards to debit cards. Sahas said the bank's ATM cards would be changed to debit cards for free. Normally, the bank charges a Bt100 entrance fee for an ATM card. The bank will also invite new depositors to apply for debit cards rather than ATM cards as they have more features. "With higher competition in the retail banking business, we should offer more benefits to attract our customers. This is a normal market strategy," Sahas said, adding that the bank's direct operation of the debit card business took effect yesterday. KTB also collaborated yesterday with Payment Solution Ltd, the OK Cash card provider, to sell the company's cash card "We Love His Majesty the King". One million of OK Cash cards are expected to be sold out through 659 KTB branches by the end of this year.
Somruedi Banchongduang The Nation
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