BAY targets top 3 ranking in SME segment in three years

Bank of Ayudhya aims to raise its ranking in the SME segment to third by 2016 from fifth now by helping customers |find business partners and expand their networks through in-depth activities.

Kasikornbank is the market leader in services to small and medium-sized enterprises, followed by Bangkok Bank and Krungthai Bank.

Several banks are focusing on the higher-yielding SME segment, so BAY must adopt a different strategy if it wants to be in the top three, Sayam Prasitsirigul, head of SME banking, said yesterday.

The process and the products must be simple for small and retail business, which are the priority focus for BAY, since both give yields of 8-9 per cent compared with 5-6 per cent for medium-size businesses, he said.

Last year, lending to retailers grew by 24 per cent, to small businesses by 21 per cent and medium-size businesses by 15 per cent.

The bank plans to expand its loan portfolio to Bt320 billion in 2016 from Bt185.4 billion last year.

To grow at 15 per cent per year to achieve the Bt320-billion target, the bank will focus not only on lending but also helping customers meet potential partners at business matching events and opening new markets through business talks and networking luncheons.

Thanks to consumer insight, the bank knows that the main requirement of small and retail businesses is partners, so it will put emphasis on hosting business-matching gatherings and networking open houses.

SUPPLY TO BIG CORPORATIONS

The open houses open a window for small enterprises to learn how to become suppliers to big corporations that are value chain customers of BAY.

The bank says it will spend |heavily on human resources and activities, especially business matching and business talks for small groups.

Healthcare and auto parts are the two promising industries for business matching, since they offer greater opportunities for SMEs.

Besides relationship management officers, officers at all 601 branches can provide credit products and services to retailers with quick approvals.

Medium-size businesses account for half of BAY's SME portfolio, with small and retail businesses splitting the other half.

Latest stories in this category

• Thanachart Capital


• Q1 2013's profit will be bright. Loan strengthens;..


• Get inside the world's greatest minds with NMG


• The next big risks for stock markets after Cyprus

We Recommend

• Not so enthused about solar panels, or wind power


• Re: 'Short-sighted energy plan' Letter, March 21.


• Senators to sue Thaksin for Skype orders to party..


• Life in Thailand not that bad after all

Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.

Source: http://www.news.thethailandlinks.com/2013/03/28/bay-targets-top-3-ranking-in-sme-segment-in-three-years/