KBank to launch transfer on app, targeting THB500 billion a year
KASIKORNBANK (KBank) sets to push forward global funds transfer service for retail customers.
The first step has been made via cooperation with the Development Bank of Singapore (DBS) to receive real-time transfer from Singapore or via KBank to recipient accounts in 21 other banks in Thailand. KBank is also preparing to introduce outward transfer service on K PLUS application for recipients in more than 40 countries worldwide this coming October and expects total transfer value both inward and outward of approximately THB500 billion a year and reaching a triple amount by 2020.
Mr. Patchara Samalapa, KBank President, said KBank has focused on adoption of digital technologies for connecting the systems of global funds transfer and cross-border transactions to enhance greater convenience and introduce more payment channels to customers, as well as responding to customers’ requirements and improving their competitiveness amid many challenges of the digital era. Since March 2017, a service has been available for receiving funds transfer from foreign countries via fintech and KBank anticipates that the number of transactions will exceed 120,000 by this yearend.
Joining hands with DBS Bank, KBank is going to launch a real-time inward funds transfer from Singapore in August. Retail funds transfer from Singapore to Thailand is worth not less than THB30 billion annually. With the new service, the transfer will be automatically verified before crediting into a KBank account on a real-time basis though it currently takes more than one day to process international funds transfer (depending on systems and countries). Customers may choose to credit into an account in 21 other Thai banks. The new service unprecedentedly enables the sender to check the account name and status of the recipient before making funds transfer, allowing them to be aware of an exact amount of funds transfer fee as well as transaction status whereas the recipient will receive the full transfer amount. The system can accommodate up to THB1.5 million in funds transfer at a time per day. The Bank expects that there will be around 3,000 transfer transactions each month. The service will be shortly rolled out in other AEC countries for broader coverage.
Currently, the number of retail inward remittance in Thailand totals approximately 3.8 million transactions a year, accounting for about THB1.5 trillion. Of those, 620,000 transactions are made via KBank, valued at THB250 billion/year, representing 16 percent of the market share. The number of non-bank inward remittance (not illegal) in Thailand totals around 200,000 transactions/year, valued at over THB10 billion/year. KBank expects total transfer value both inward and outward of approximately THB500 billion a year and reaching a triple amount by 2020.
Mr. Patchara added that KBank is set to unveil a new feature for outward mobile remittance service via K PLUS in October, which will, for the first time, enable KBank customers in Thailand to expedite the funds transfer transactions by themselves to recipients in more than 40 countries across the globe, including the US, the UK, Singapore, Hong Kong, India, Australia and the EU. The service opens a new chapter of outward retail funds transfer because recipients will receive the full amount of money while senders can determine the receipt date and know the exact transfer fee immediately. This initiative marks a new dimension of outward retail remittance, presently at around 8 million transactions or topping THB650 billion in value annually.