Krungsri Ayudhya Card collaborates with local businesses to launch a digital dining ecosystem U Eats
The global health crisis has highlighted the interconnectedness of communities and the need for businesses to contribute positively to society. In response to changing market dynamics, businesses are reevaluating operations and adopting strategic approaches such as branch transformation to enhance efficiency and meet evolving customer expectations.
Recognising this need as well as the importance of technological advancements and data intelligence in the digital landscape, financial institutions including Thailand’s Bank of Ayudhya (Krungsri) have shifted to digital channels that reduce reliance on physical branches.
Krungsri Ayudhya Card has responded to such market shifts by launching a digital dining ecosystem named U Eats. Through the U Eats initiative, the Thai bank has collaborated with local businesses to create a platform that facilitates convenient dining experiences for customers.
Financial impact
The financial impact of Krungsri’s U Eats platform has been significant, with a 25% growth in dining sales volume in 2023. In its first year, U Eats garnered more than 1.77 million clicks from 990,000 app users, reflecting high user engagement. The app’s penetration has reached 90% of total customers, surpassing the initial target set by the bank.
With a focus on four key components – a dining voucher e-marketplace, personalised promotions, strategic partnerships and innovative solutions – Krungsri aimed to engage users and establish new revenue streams in the post-pandemic era.
The bank achieved this by partnering with more than 70 leading dining brands, a move that not only created a new revenue model based on commissions and merchant discount rates but also strengthened its Krungsri Consumer Creditcard (KSC) offering.
Beyond revenue generation, U Eats has played a crucial role in reducing operating costs by automating API data integration and leveraging new partnerships to share marketing promotion costs. As a result, KSC has witnessed a reduction in the cost per sales volume, dropping from about 4% to 2.8%.
Enhancing experiences
Among other developments, Krungsri’s introduction of a new digital payment gateway in smart API payments marked a milestone in the Thai credit card market.
The bank has also enabled data integration with local partners such as Wongnai and Buzzebee to collect valuable insights into user preferences at the product stock-keeping unit (SKU) level. This has enhanced the bank’s ability to tailor offerings to customer needs.
In addition, the bank has demonstrated its commitment to environmental, social and governance (ESG) principles by forming strategic partnerships with environmentally conscious dining brands. By strategically innovating, fostering partnerships and maintaining a customer-centric approach, Krungsri is constantly evolving its offerings to meet market demands, solidifying its position in digital banking.
Krungsri Ayudhya Card’s multiple wins at the Annual Retail Banker International Asia Trailblazer Awards 2024 include: Best Advance in Loyalty/Rewards Programme; Best Fintech Partnership and Best Revenue Sharing Initiative.