PATTAYA, Thailand – Thailand’s banking sector is undergoing a major restructuring as sluggish economic growth, weak credit expansion, and slower income growth push lenders to cut costs through staff reductions, branch closures, and increased use of technology. Major commercial banks — Bangkok Bank (BBL), Kasikornbank (KBank), Siam Commercial Bank (SCB), and TMBThanachart Bank (TTB) — are all implementing plans to downsize operations and adopt AI-driven models to enhance efficiency.
Kasikorn Research Center executive Dr. Kanjana Chokpaisansilp said that the core challenge for Thai banks is operational cost reduction amid an economy that has yet to recover. Lending remains sluggish, and main income sources such as interest and fee revenue have not rebounded significantly, even as policy rates trend downward. Changing consumer behavior and the rise of financial technology are also accelerating structural shifts across the industry.
Continuous decline in branches and staff
Since the COVID-19 pandemic, the number of bank branches and employees in Thailand has been steadily decreasing.
-In 2019, before the pandemic, banks operated 6,508 branches.
-That number dropped to 6,167 in 2020, 5,650 in 2021, 5,275 in 2022, 5,082 in 2023, and an estimated 4,900 in 2024.
The total number of bank employees also fell from 150,468 in 2019 to 126,742 in 2024.
While workforce and branch reductions continue, the pace has slowed since the pandemic’s peak.
Rising costs per employee despite downsizing
Interestingly, staff costs per person have risen, mainly due to banks’ investment in upskilling and reskilling employees.
From 2019–2020, average annual staff cost was 1.16 million baht per employee, rising to 1.34 million baht in 2024.
Similarly, staff-related costs per branch rose from 26.9 million baht in 2019 to 34.7 million baht in 2024.
Dr. Kanjana noted that banks must continue balancing declining revenue with cost optimization — consolidating branches, reducing size, and enhancing service efficiency. Staff are being retrained to become financial advisors (FA) and deliver higher-value, specialized services.
KBank’s 5-Year Plan: Reduce Workforce by 10–20%
Jongrak Rattanapian, KBank’s managing director, said the economic slowdown has made income growth extremely difficult, forcing banks to adjust expenses accordingly.
KBank aims to keep its cost-to-income ratio in the low 40% range by 2025 through technology adoption and careful workforce management.
Under its five-year plan, the bank intends to cut headcount and staff costs by 10–20%, aligning with its AI adoption roadmap.
Outsourcing and freelance hiring will rise, especially for operational and document-based roles rather than analytical work. Currently, KBank employs around 18,300 people, including several thousand outsourced workers.
Early retirement program “Kasem Sook”
KBank has also launched the “Kasem Sook Early Retirement Program” for employees aged 45–59, encouraging voluntary early retirement as part of organizational restructuring. The initiative matches the preferences of staff ready for change while supporting the bank’s long-term cost reduction and digital transformation goals.
KBank plans to reduce its branch network gradually by 10–20 branches annually, down from 756 currently to around 700 within three years, mainly by closing low-traffic branches, merging nearby ones, or shrinking branch sizes to cut rental costs.
“When the economy slows, banks inevitably feel the strain as part of the broader system,” Jongrak said.
CEO Kattiya Indaravijaya added that the early retirement program met its target when it closed on October 7, 2025. She stressed that cost-cutting and digital adoption are not unique to banks — “every organization must adapt amid slow loan growth and falling interest income.”
BBL: Branches Becoming Sales and Advisory Outlets
Chaiyarit Anuchitworawong, Executive Vice President of Bangkok Bank, said that all banks are reducing branches and ATMs due to rising digital transactions.
Bangkok Bank’s network has fallen from over 1,000 branches to 700–800, with 50–100 closures annually in recent years. The pace of closures is now slowing, but the role of branches is shifting — from transaction-based services to sales and financial advisory outlets.
“In the future, branches will be smaller, acting as customer touchpoints and sales outlets rather than transaction centers,” he explained.
TTB: 30–40 Branch Closures Annually
Thakorn Piyapan, CEO of TMBThanachart Bank (TTB), confirmed that the bank continues to trim 30–40 branches per year, down from the current 430, mainly through mergers or closures based on transaction volume.
However, some branches remain essential — particularly those serving elderly customers and others less familiar with digital banking. Branches in shopping malls with high traffic will continue to operate.
“The downsizing trend continues, though not as aggressively as before, and branch models will evolve based on customer behavior,” Thakorn said.
SCB: Workforce Target at 15,000 Amid AI and Virtual Bank Disruption
Kris Chantanotoke, CEO of Siam Commercial Bank (SCB), said the bank faces three main challenges:
- Global economic uncertainty,
- Rising household debt and consumer vulnerability, and
- Growing competition from AI-driven and virtual banking entrants.
To sustain double-digit return on equity (ROE) and bring its cost-to-income ratio closer to 30%, SCB is overhauling its structure to boost efficiency.
The bank expects to reduce staff from 18,000–19,000 currently to around 15,000 as operations become increasingly digital. Over the next 5–10 years, further staff reductions are anticipated as digital and mobile banking expand — already accounting for 25% of total income in 2024.
SCB’s 651 branches will also gradually decline and be redesigned for more specialized, digital-integrated services.
“The downsizing will be transparent and fair,” Kris emphasized. “We evaluate based on redundancy and function, not age.”
In summary, Thailand’s major banks are entering a new phase of restructuring — cutting labor and property costs while investing heavily in AI, automation, and virtual platforms. The sector’s transformation marks a shift from traditional branch-centric operations to lean, digital-first institutions built for efficiency in a slow-growth economy.
