GSB waives mobile banking transaction fees

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Bangkok – The Government Savings Bank (GSB) has officially waived transaction fees for its mobile banking services, hoping to attract more customers to use its banking application.

The announcement was made by GSB President and CEO Chatchai Payuhanaveechai, following similar moves made by other major financial institutions. The decision is expected to attract more online banking users.

According to the CEO, the waiving of transaction fees is likely to have an impact on the income of participating banks. Nevertheless, he explained that the move would only make a small dent in GSB’s revenue, pointing out that the bank normally generates 300-400 million baht from processing fees, which is equivalent to 5 percent of its total revenue. The remaining 95% of the bank’s income comes from interest charges.

He further indicated that only 2.6 million GSB customers are using its mobile banking application, which is a significantly low figure compared to the average 6-7 million users of other major financial institutions.

Chatchai is confident that the waiver will encourage more customers to use its mobile services. He also said that the bank does not have a plan to downsize its branches, but is planning to restructure the existing ones in conformity with banking trends of the digital era.