Credit-card firm ktc charts a different path for real growth

Thinking outside the box, advancing fast but also retreating quickly, and high segmentation are among the prime strategies of Krungthai Card under the leadership of unconventional banker Niwatt Chittalarn.

"We want to be everything but a credit-card company. We see everything as possible. At KTC, we'll say there is no limit in everything we do. We dare to do and adjust," said Niwatt, KTC's CEO and president.

And with that attitude, he said, KTC's speed to market has been exceptional. One example was its recent launch of a credit card equipped with an RFID (radio frequency identification) technology. One week after VISA made the proposal, KTC sent staff to Atlanta to discuss the issuance plan with VISA, and within five weeks six TV commercials were readied for airing.

"But when we later found that Thais did not still accept this technology, we retreated fast," Niwatt said.

Speaking at "The Corporation of Design" conference held by Thamamsat Business School last month, Niwatt said KTC recruited employees from diverse fields but none with a financial background, except for specialised areas such as treasury, investor relations, funding, and risk management. The firm has thrived with a diverse pool of staff who are dynamic, dare to do and dream, and are capable of moving fast - both forward and backward, he said.

At its "smart office", staff can sit anywhere as IT enables seamless communication. Staff work on "mission-based assignments". There is no dividing them into divisions and departments, he said.

"There is no HR department. At KTC we call it 'Fun Management Team' because their focus is on making a happy workplace," Niwatt said.

As to the working atmosphere, KTC staff are encouraged not to wear ties and suits but jeans. The firm also hires 400 university students every year to work on meaningful tasks with paid monthly salary of around Bt15,000 each, he said.

Niwatt said KTC has introduced about 200-300 marketing campaigns annually and is very focused on "segmentation" strategy.

"Why are we vying for so many segments? We have issued cards for many specific groups such as physicians, divers etc," said Niwatt.

KTC has geared for even more niches. It is looking towards marketing to customers, "one by one", Niwatt said.

"We're gearing up for one-to-one marketing. People are individualised. Nowadays, we have information every time customers slip their cards. We know who they are, where they spend the money, is it near or somewhere between their homes and workplaces.

"We're advancing to know what are the package sizes [of the products] they bought. We're currently dealing with some [stores]," he said.

Niwatt said segmentation is very important for KTC in its drive towards its goal of "one-to-one marketing".

"We can tell what you consume or motivates you to go to watch a movie," he said, speaking of KTC's  SMS messages sent to its members to pick up free movie tickets at specific periods.

But despite its colourful and innovative marketing, KTC, like its slogan "It's Real" has emphasised on sustainable business practices. Niwatt said KTC, unlike some of its competitors, has refrained from giving away discounts on product purchases.

"The credit-card business, on an average, has shared a 1.3-per-cent fee from the shops, [of which] the card issuer receives 1 per cent and we get the rest 0.3-0.4 per cent. Some [credit card] companies offer a 5 per cent discount [on products purchased through the cards]. I don't know how they can survive.

"Quite often, we have marketers who are inexperienced and abuse the market."

"We won't do anything which is 'unreal'," Niwatt said.

pichaya@nationgroup.com