In the face of ongoing economic challenges, ttb (TMB Thanachart Bank) has announced a new strategy dubbed The MEANINGFUL Change for 2025, focusing on empowering customers and reforming financial solutions. The bank recognizes the critical issue of household debt in Thailand, which has reached a staggering 16.3 trillion baht or 89% of the country’s GDP, representing a threat to economic stability and individual well-being.
Amid global economic pressures, including heightened political tensions and trade wars, ttb aims to align its services with the evolving needs of individuals and businesses alike. The economic plight that many Thai people are currently navigating is characterized by stagnant incomes against skyrocketing living costs. This has created a situation where many people face the reality of being "old but still in debt." In light of these circumstances, ttb's approach centers on providing meaningful solutions for debt relief and financial recovery.
ttb’s CEO, Pitak Tantiprasertsuk, emphasized the bank's commitment: “We have always recognized the debt problems of the Thai people and are determined to help solve these issues seriously and continuously.” The bank's efforts have been systematic since 2020 when the COVID-19 pandemic severely impacted Thailand's economy.
This strategic initiative features several programs aimed at addressing debt burdens directly. One significant offering is the debt consolidation service that has already provided relief to clients exceeding 2.24 billion baht in interest expenses. Moreover, through low-interest loans for employee assistance and various financial literacy programs, ttb aims to equip over 96,000 customers with better financial management tools.
The initiative introduces segment-specific programs catering to three primary customer groups with distinctive needs. The first group comprises clients facing payment difficulties, where ttb collaborates with the Bank of Thailand under the program "You Fight, We Help," offering debt restructuring, interest waivers, and payment reductions over three years to facilitate customer recovery.
Secondly, the bank plans to support creditors with a proven track record of timely payments. This often-overlooked group will enjoy benefits through the "Good Payment, Good Rewards" program, which will provide special privileges to vehicle and home loan customers, as well as employees and SMEs that regularly honor their financial commitments.
The third group includes customers interested in integrating into the financial system. For example, small business owners who may have been excluded due to various limitations will gain access to financial solutions tailored specifically for them through ttb's initiatives promoting financial inclusion.
In terms of sustainability and customer-centric banking, ttb introduces the “Good Payment, Good Rewards” program, designed to encourage responsible financial behavior by rewarding timely repayments with perks that enhance customer loyalty and engagement. Home loan repayment rates have been set at 3.39% annually (MRR-4.215%), with a fixed rate throughout the loan term, while special terms offer a further reduced rate of 5.45% (MRR-2.155%) for those who maintain good repayment status.
With vehicle loans, customers opting to refinance with ttb will benefit from a reduced interest rate starting at 13% and a cashback incentive of 5% for timely payments over the first year. Personal loans through ttb Flash Card will now offer an initial interest rate of 17%, while also including a loyalty discount that can reduce the rate to as low as 13%, with a clear path to debt resolution within three years.
The prominent focus for ttb in 2025 is its digital solutions, particularly through the ttb touch app, which is being enhanced for a more user-friendly experience. As part of this upgrade, ttb is looking to adapt its offerings to meet the changing behaviors of modern consumers who are increasingly inclined to complete transactions online.
Through the app, users can quickly assess credit limits in seconds and apply for loans immediately. Responding to client inquiries will also see improvements with “Yindee,” an AI chatbot offering 24/7 service without the need for long wait times typical of traditional call centers.
ttb's digital ambition includes launching a new loyalty program in April 2025, which is considered a first in Thailand's banking industry, set to integrate gamification elements to engage customers by completing tasks to unlock rewards and tailor services to their financial lifestyle.
Brand Inside views this strategy as a significant shift for the Thai banking sector amidst escalating debt crises and rapid digital transformation. The segmentation strategy reflects an understanding of the diverse needs of customers, particularly focusing on the often-overlooked segment of well-paying debtors.
This combined approach of addressing debt relief while simultaneously fostering financial literacy further highlights ttb's long-term vision. They don't just aim to fix immediate issues but also enhance clients' knowledge and skills for sustainable financial health.
In closing, ttb continues to strive towards its mission of transforming the financial lives of its customers, aligning its operation strategy with their needs while making meaningful changes that resonate throughout the community.
