The state-owned postal group has started the initial phase of the partnership in August 2018, at 964 post offices. By next year, cash withdrawal will also be available.
Kasikornbank aims to reach rural residents who have no local bank branch available, retailers and shoppers who depend on delivery service. The bank also is trying to better serve online merchants and shoppers who often go to the post office to send or pick up parcels.
Thailand Post`s network reaches even the most remote areas of the country, allowing Kasikornbank to save on investments to expand its physical presence and instead allocate more money to digital banking.
The Thailand-based lender has around 1,000 branches, so its physical network in effect will more than double once all 1,300 Thailand Post locations come on board. The bank also operates 11,792 ATMs nationwide. A physical presence still matters for banks in Thailand even though the government and lenders are promoting digital banking.
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