ANALYSIS
Kannikar sets SCB precedent
Kannikar, first marketer to become SCB president.
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Kannikar Chalitaporn, 59, who is seen as having built Siam Commercial Bank's retail-banking business up to a starring role over the past three years, is the first marketer to become the bank's president.
Despite her short time in finance, her marketing skill is likely to lead the bank amid tougher competition and a changing environment. Kannikar, a director and senior executive vice president, will take over as president of Thailand's fourth-largest bank on February 1 after Jada Wattanasiritham's term expires in January. Known among the bank's staff as "Khun KC", she took her marketing experience gained at Unilever Thai Trading to the bank in January 2003 to supervise its retail-banking group. Led by Kannikar, the bank's non-interest income rose from Bt8.42 billion in 2004 to Bt10.38 billion last year and Bt8.14 billion in the first three quarters of this year. The bank's credit-card base has grown from around 300,000 cards three years ago to some 1.5 million cards today. Her performance has been noticed not only by the bank's management and board of directors but also by outsiders. A source from Kim Eng Securities (Thailand) said Kannikar was right for the bank's top job because the local banking industry was moving towards marketing-oriented businesses. "I was not surprised when she was appointed as her achievements in the retail-banking business are quite apparent. The banking business trend is also towards the retail business and Siam Commercial Bank has been going this way so far," he said. What she lacks in finance experience, the bank can cover with its well-established system, including risk management, so there should be no problem, he said. Sirinattha Techasiriwan, senior vice president of Syrus Securities, said Kannikar had built up the bank's retail business, particularly in credit cards and bankassurance. A background in marketing would be Kannikar's strong point, as well as a good understanding of consumers' needs. The bank's strong management team would be a solid backup for Kannikar, banking analysts said. Jada will continue to serve as a director until the end of her presidency and will join the bank's executive committee on February 1. Vichit Suraphongchai, chairman of the executive committee, will also assume the title of chief executive officer on February 1. Amid the stiff competition in the banking industry from existing commercial banks and non-bank lenders, only time will tell whether Siam Commercial Bank has made the right decision this time.
Somruedi Banchongduang The Nation
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