Stand-first: A new service that allows retail investors in Thailand to track and subscribe more easily to a bond via the Debenture and Equity on Krungsri Mobile Application (KMA) is bringing new digital investment opportunities to the masses. Representing, Bank of Ayudhya (Krungsri), it won the Best Next-Generation Offering at the Private Banker International (PBI) Global Wealth Awards 2022. The achievement has reflected the bank’s commitment to serving customers which is in alignment with Krungsri’s 2022 business direction that places key focus on digital and innovation in order to create beyond tech customer experience.
The Debenture and Equity end-to-end offering on KMA allows customers to invest in well-known companies for a long-term return on their bond in an easy, fast and trackable way via the KMA app without having to visit a branch, which was important during Covid-19 induced lockdowns. It enables readiness and pre-application form-filling for what are often limited subscription offerings only available to those that move fast.
Retail investors put their capital into six well-known firms last year via the app, including the initial public offering (IPO) for loan provider, Ngern Tid Lor Public Company Limited. Within five days of their IPO, the bank’s figures showed that 97% of its subscribers were from KMA app, whereas only 3% of transactions emanated from Krungsri’s branches.
Key features of the next-generation digital offering include an enhanced customer experience (CX), rehearsal testing, auto error detection and subscription options before a bond debuts. The app means:
On the day before an IPO date, customers can pre-access the Debenture and Equity menu on KMA to create their customer profile and complete online suitability assessment test to classify the type of investor they are. This shortens the process on the IPO date and helps in case popular bonds sell out in a short time period, as they tend to do so if the company’s credit rating is good.
On the IPO date itself, a real-time function is available to subscribe to a bond via a prepopulated electronic form that can automatically be linked to withdraw funds from a Krungsri savings account, or an electronic savings account linked on KMA, so no-one misses out. Customers also have a choice to receive a Debenture Certificate by filling in KMA, cutting paper waste.
The subscription attempt will be communicated to customers via a KMA app message/email within a second to acknowledge the completion of the bond subscription, with the allocated share amount. In case the allocated share is lower than the requested subscription, KMA app will process auto refunding instantly.
These digital features overcome the limitations of the traditional retail manner of debenture bond investing whereby customers previously had to visit a branch during office hours on the IPO date, meaning many missed out or were driven to alternative providers. Other benefits of Debenture and Equity on KMA app include:
Smooth, quick, and convenient end-to-end workflows, enhancing CX.
Lower cost to serve whereby benefits also accrue to the bank.
Future plans include additional improvements to CX functionality and more use of in-depth data analysis to enhance customer insights, volume and uptake.