SCB cuts branches and staff as AI reshapes Thai banking

Bank targets efficiency with smart branches and digital expansion

Puntid Tantivangphaisal32 minutes agoLast Updated: Saturday, September 13, 2025

64 1 minute read

SCB cuts branches and staff as AI reshapes Thai banking | Thaiger — Photo of Kris Chantanotoke courtesy of Bangkok Post

Siam Commercial Bank (SCB) is restructuring its retail operations in response to rising household debt and the growing dominance of artificial intelligence (AI) in the financial sector.

Since May, SCB has reorganised its retail segment into a new consumer banking division, covering branches, retail services, and employees. Chief Executive Kris Chantanotoke said the shift reflects customer preferences and the steady move toward digital banking.

As part of the transformation, SCB plans to gradually reduce its workforce of around 18,000 employees and 651 branches. Kris noted that major Thai banks, which currently employ between 18,000 and 19,000 staff, are expected to reduce headcount to between 10,000 and 15,000 within the next decade.

Branch activity has fallen sharply, from around 120 million transactions annually before the pandemic to 60 million during it. The figure has since stabilised, but SCB expects to maintain only about 500 branches in the near future.

“We aim to shift approximately 20% of branch transactions to digital channels by the end of the year.”

The bank’s mobile app, SCB Easy, now has about 17 million users.

SCB cuts branches and staff as AI reshapes Thai banking | News by Thaiger — Photo courtesy of Brand Inside

While scaling down, SCB is also adjusting its revenue mix. Before the 1997 financial crisis, corporate banking was its main source of income. Retail banking later took the lead, but SCB now plans to balance its portfolio across corporate, small business, and retail clients.

To manage the transition, the bank has rolled out a voluntary early retirement scheme for staff aged 55 and older. It is also investing heavily in retraining, with 1,000 employees expected to complete upskilling programmes as virtual financial advisors by the end of the year.

Kris said the shift aims to prepare SCB for the broader economic challenges ahead.

“We need to build confidence during a difficult time, and the government must act quickly with coordinated fiscal and monetary measures.”

For this year, SCB has set ambitious goals: a 10% return on equity, a cost-to-income ratio below 40%, and digital revenue contributing 25% of total income, reported Bangkok Post.

Vitoon Pornsakulvanich, chief consumer banking officer, said the focus will shift to personalised services, wealth management, and AI-powered smart branches.

Puntid Tantivangphaisal

Originally from Hong Kong, Puntid moved to Bangkok in 2020 to pursue further studies in translation. She holds a Bachelor's degree in Comparative Literature from the University of Hong Kong. Puntid spent 8 years living in Manchester, UK. Before joining The Thaiger, Puntid has been a freelance translator for 2 years. In her free time, she enjoys swimming and listening to music, as well as writing short fiction and poetry.