BANGKOK, Thailand -- During the past several years, the number of bank micro-branches, located in shopping centers, supermarkets, schools and even in hotels and tourist venues, has grown sharply in Thailand.
According to the Bank of Thailand, as of March local banks operated 3,059 full-scale branches and 615 sub-branches nationwide, compared to 3,105 full-scale branches and 561 sub-branches in March of 2002.
Operating flexibility and cost are the main factors behind the growth of micro-branches, according to a report in the Bangkok Post. About 60 percent of micro-branch transactions are through ATMs, with 40 percent using counter services.
Na-Bhengbhasang Krishnamara, an executive vice-president at Siam Commercial Bank (SCB), told the Post that the break-even point for a micro-branch can come in just six to 12 months. SCB says it invests two million to three million baht (about (about $46,758 to $70,051) for each sub-branch, which are usually 60 to 70 square meters in size and staffed with just three or four people.
Popular tourist destinations such as Ko Phi Phi and Phuket are common targets for micro-branches, which focus on basic transactions and foreign-exchange services for travelers, according to the Post.
Na-Bhengbhasang said the bank planned to open 20 new branches this year, mostly sub-branches in department stores and tourist spots. SCB expects to have 500 branches in operation by the end of 2003, compared with its current 484.
Bank of Asia, a market leader in developing new consumer channels, last month established the industry's first hotel sub-branch at the Riverside Hotel in Kanchanaburi.
