United Overseas Bank (Thai) or UOBT has set an ambitious goal to double its retail customer base in the Thai market over the next several years after an integration between UOB Group and Citigroup's consumer banking businesses.
With the integration for the Thai market complete as of yesterday, UOBT's retail customer total stood at 2.4 million. The bank aims to double this figure within 3-5 years.
The income proportion of the retail banking business increased to 70% of the bank's total revenue from 54% before the integration, said Yuttachai Teyarachakul, head of personal finance services at UOBT.
The consumer banking businesses of Citi Thailand, comprising credit cards, personal loans, wealth management and deposits, were transferred to UOBT, as well as around 1,800 employees and executives of Citi.
Despite an overlap in terms of staffing in some areas, UOBT is keeping all of Citi's employees to support its retail banking business expansion across the region, said the firm.
UOB announced the completion yesterday of the acquisition of Citigroup's consumer banking businesses in Thailand and Malaysia. The Singapore-based bank previously announced the acquisition of Citi's consumer banking businesses from four nations in the region, including Indonesia and Vietnam.
Completion of the asset acquisition in Indonesia and Vietnam is planned for 2023.
The acquisition is part of UOB's strategy to scale up its Asean retail business outside of Singapore. Once completed, the acquisition is expected to double UOB's existing retail customer base in the four markets to 5.3 million customers, while adding 5,000 employees.
Mr Yuttachai said following the asset integration in the Thai market, UOBT ranks No.6 in the industry's retail banking business and third for credit cards.
The bank's total assets increased to around 800 billion baht.
"Citi's customers will receive all benefits and conditions unchanged for the next 12 months after transferring to UOBT. However, internal processes have been transforming from Citi to UOBT and the bank is trying to transition smoothly without having any impact upon clients," he said.
Vira-Anong Chiranakhon Phutrakul, UOBT's head of retail and brand, who formerly was an executive of Citi Thailand in the consumer banking business, said the company aims to be the preferred retail bank in the Thai market after the integration.
The bank will gradually change the logo and brand of Citi to UOB, she said.
Mrs Vira-Anong said the group's consumer banking business in the Thai market is important and has a high-quality customer base.
Upper mass market segmentation with monthly income in the range of 15,000-25,000 baht is the key client base, as they have high potential to be upgraded to the bank's wealth management customers, she said.
