SCB to change focus beyond lending

Despite expecting 3 percent to 5 percent growth in loans this year, SCB executive chairman Vichit Suraphongchai studies ways to upgrade the bank's core system.

According to a report in Bangkok Post, Siam Commercial Bank adjusted its business strategies in line with changes in the global economic landscape, said Suraphongchai.

Loans will not be a core area for banking business as a result of global changes from the economic crisis. Customer demand and consumption behaviour have changed significantly. Large corporations want business solutions and a knowledge base from financial institutions rather than funding.

As a result, the bank upgraded its core banking system and enterprise data warehouse. The development should build the bank's profitability in long term, despite no concrete results in the short term.

"For SCB, loan growth will not be a key focus compared with profitability. In my opinion, financial institutions should be both a funding source and a knowledge base for customers. The bank expects to keep its relationship with clients for a longer term with this business strategy, and it supports the bank's profitability in the long term," Dr Vichit said.