Kasikornbank launches funds transfer service for all AEC+3 currencies at every branch

It's the first bank to have a transfer service for the 10 Asean currencies and the yuan, yen and won.

Aiming to become a regional settlement bank, KASIKORNBANK has introduced funds transfer service for all AEC+3 currencies at every branch, embracing fast-growing cross-border trade denominated in local currencies. The move will not only cut customers’ transaction costs, but also give them opportunities to seek new partners. Being Thailand’s first bank to offer the service for all AEC+3 currencies, KBank expects at least 280 billion Baht in funds transfer under this service for the year.

According to Mr. Silawat Santivisat, KBank Executive Vice President, KBank plans to be a regional settlement bank supporting trade between AEC and three large, neighboring markets, namely China, Japan and South Korea, totaling 66 trillion Baht (US$1.8t) per annum, plus the 20-trillion-Baht (US$565b) intra-regional trade of ASEAN. To this end, AEC+3 has seen significant expansion as one of the world’s economic powers.

Mr. Pattarapong Kanhasuwan, KBank Executive Vice President, said ASEAN member states have agreed recently to promote trade settlement denominated in local currencies, replacing major global currencies, e.g. the US Dollar, Pound Sterling, Euro, etc. which have been largely used among regional trade partners. As a result, local currencies have become more popular, particularly in trade settlement between Thailand and ASEAN, which soared steadily over the past five years from 16 percent of total trade in 2012 to 22 percent in 2016.

Mr. Silawat added that, given strong demand from Thai customers, KBank, equipped with branches and allies in all AEC+3 countries, has turned out to be the first bank in Thailand to offer services of funds transfer and trade settlement denominated in AEC+3 currencies. Through its international trade service centers and branches located in the same time zone, related facilities and convenience will be offered to AEC+3 business operators, with speedier transactions.

Reducing currency exchange, their transaction costs will be decreased, while their trade opportunities with new local partners will be enhanced, as many operators in this economic bloc prefer local currencies in trade. KBank expects to see at least 280 billion (US$7.9b) Baht in funds transfer under the new service for the year, with over-year growth of 11 percent.

Mr. Pattarapong revealed that in its efforts to turn into a regional settlement bank, KBank has teamed with more than 70 public and private organizations in AEC+3 and improved its settlement service capability especially for this region, plus the three neighboring markets. Digital technologies have been employed in advancing international settlement channels, so that customers can enjoy accurate, swift and secure services. Global remittance can also be made through K-MOBILE BANKING PLUS as an alternative channel for fast and convenient customer service, offering anywhere, anytime transactions that slash operating costs with greater customer access through KBank’s partners. For instance, a Thai operator may directly conduct outward remittance to a trade partner’s account with Wing (Cambodia) Limited Specialised Bank.