Siam Commercial Bank Leads Digital Banking with AI Technology Unveils Three AI-Innovations Revolutionizing Retail Lending and Digital Wealth Experiences

Friday 17 May 2024 13:49
Siam Commercial Bank has showcased remarkable success with its Digital Bank with Human Touch strategy, unveiling its 1Q24 operating results marked by sustained growth across all fronts. The Bank is poised to advance further by spearheading the evolution into an AI-First Bank, leveraging AI technology to revolutionize every facet of its operations. This includes pioneering the Better Brain model, which integrates AI into product development, service linkage, and operational enhancement. In a groundbreaking move, the Bank has introduced three innovative AI solutions, utilizing AI Underwriting model for the full approval of retail loans, and introducing the AI Advisory Chatbot and My Alert service for digital wealth management. Continuing its commitment to technological excellence, the Bank is dedicated to enhancing its capabilities to deliver superior services to its clientele. Emphasizing its role as a digital bank that resonates emotionally with its customers, the Bank is committed in its mission to transition into a fully-fledged digital entity, aiming for 25% digital income by 2025.
Siam Commercial Bank Leads Digital Banking with AI Technology Unveils Three AI-Innovations Revolutionizing Retail Lending and Digital Wealth Experiences

Mr. Kris Chantanotoke, Chief Executive Officer of Siam Commercial Bank, has unveiled the Bank's implementation of the Digital Bank with Human Touch strategy, aiming to establish itself as the premier digital bank in wealth management while delivering a seamlessly integrated service experience across all channels for its customers. In the first quarter of 2024, the Bank achieved operating results that align closely with its objectives in every aspect. Notably, it recorded a net profit of 13.2 billion baht, marking a 13.7% increase compared to the corresponding period last year. Concurrently, it maintained a commendable cost-to-income ratio (C/I) of 37.7%, a return on equity (ROE) of 12.7%, and achieved a digital income growth to 9.9%.

In the evolving landscape of financial services, customer-centricity is paramount for banks to remain competitive. Prompt and personalized responses to customers' financial needs are imperative. Thus, SCB is accelerating the development of its services to establish itself as a fully-fledged digital bank, thereby gaining a competitive edge in an increasingly saturated market. This year, Siam Commercial Bank is prioritizing the utilization of AI technology to propel its banking operations in all dimensions. From product development and service integration to enhancing organizational operational efficiency and bolstering technological acumen among its workforce, the Bank is strategically advancing under the Better Brain model. This model harnesses the power of AI and Machine Learning to cultivate customer-centric services, delivering hyper-personalized experiences tailored to each individual customer, ensuring convenient access through the Bank's omnipresent digital platform, and ultimately enhancing overall customer satisfaction.

"From these endeavors, the Bank has successfully introduced three pioneering AI innovations poised to revolutionize customer experiences. Among these innovations is the utilization of AI Underwriting model for the full approval of retail loans, comprising housing loans, hire purchase loans, and loans for small entrepreneurs (SSME). This advancement streamlines the approval process, enabling customers to receive decisions swiftly compared to traditional methods. Additionally, the integration of AI and Machine Learning to evaluate customer risk based on comprehensive data empowers the Bank to determine suitable interest rates, enhancing customer experiences and promoting responsible lending practices."

Mr. Kris emphasized the Bank's dedication to leadership in wealth management, unveiling AI-driven enhancements to the investment experience through digital channels. This aligns with the escalating usage of SCB EASY, which has witnessed a remarkable 23% year-on-year expansion. It has been observed that customers are currently showing a keen interest in purchasing insurance via digital channels, with uptake rates up to five times higher than traditional methods. Furthermore, there has been a notable surge in digital investment activity, with transactions occurring up to seven times more frequently compared to non-digital channels. This trend underscores the evolving preferences of customers who are increasingly gravitating toward digital platforms as their preferred investment channel. In response to this trend, AI is being harnessed to enrich wealth management experiences tailored to the digital-savvy preferences of the new generation. The Bank has embarked on the development of the AI Advisory Chatbot service on the SCB Connect channel, facilitating interactive access to fundamental fund information. Customers can effortlessly query their desired funds, allowing chatbots to provide natural responses. Additionally, the Bank has introduced the My Alert service, delivering hyper-personalized investment notifications tailored to the individual needs of customers. The service leverages AI to monitor individual investment portfolios round the clock. This service boasts sophisticated capabilities in data processing, analyzing existing portfolios, market movements by the SCB CIO, and investment opportunities, delivering timely notifications to customers through various channels including SCB Connect, SCB EASY, and personal financial advisors. These two services are poised to redefine the landscape of wealth management, delivering unparalleled customer experiences.

Simultaneously, the Bank has implemented AI technologies to streamline work processes across various departments, enhancing overall operational efficiency. By leveraging AI and other advanced technologies, the Bank aims to automate tasks, thereby reducing manual intervention, ensuring swift and accurate outcomes, saving time, and trimming management costs. Additionally, a comprehensive training program has been instituted to equip employees with the necessary knowledge and technical skills, empowering them to effectively navigate and contribute to the Bank's AI-driven initiatives.

"The Bank is steadfast in its belief that AI will spearhead a new S-curve, propelling us toward our vision of becoming a fully-fledged digital bank. This transformative technology is poised to drive digital revenue growth to 13% by the end of this year, with a target of reaching 25% by 2025. This strategic focus on enhancing digital capabilities is crucial for achieving a balanced income structure conducive to sustainable growth, while also fortifying our position amid emerging competitors leveraging similar technological advancements. This strategic approach ensures our readiness to adapt to evolving market dynamics and positions us as a formidable contender in the digital banking landscape. With unwavering commitment to our Digital Bank with Human Touch strategy, we remain dedicated to touching the hearts of our customers and delivering exceptional experiences," concluded Mr. Kris.

Source: Siam Commercial Bank