The Nation



Tisco adopts changes as it seeks to broaden client base

TISCO FINANCIAL GROUP recently launched a new corporate logo, one that reflects the concept that it can create the opportunities its customers are looking for.

The new circle logo signifies "the ring of opportunities".

The company has also adopted a new corporate motto - "the opportunities" - which replaces the previous "wealth possibility".

The reason for the change is that it considers the term "wealth" makes people feel that its services are only for the well-heeled.

The new motto will enable it to communicate better that Tisco serves all groups of customers, which ties in with its new strategy of expanding the customer base to tap "Gen Y" and "Gen Z" people in the retail (individual customer) and business sectors, besides "Gen X" - or well-off - people, among whom it has already secured a huge base, group chief executive officer Oranuch Apisaksirikul said.

"Customers are now more varied and represent a [potentially] bigger base, so we should tap all kinds of customers. Therefore, we have |to clearly communicate that we |can cater to future customers," she said.

However, as the new logo and branding would take some time to bear fruit, Tisco will use corporate social responsibility to help strengthen its brand awareness, she said.

"If the Tisco brand is well known, it means the bank will be more easily able to offer products and services. We hope branding will lead to customer-base expansion in the future," she added.

Thanks to its relatively small size, Tisco has more flexibility in adjusting its business, which has been proven by the fact that Tisco's brand awareness is high as an auto-finance company, even though its origins were in investment banking and securities business, the CEO said.

Even though retail lending is a strong base for Tisco, deposits for individual customers are not.

The company therefore wants to secure more deposits from individuals and projects this segment will account for 40-50 per cent of its total deposit portfolio in the next three years, from 30 per cent currently, she said.

The bank will propose its 2014 business plan to the board this month.

Oranuch said lending growth would be around 10 per cent, against at least 15 per cent achieved in recent years, as Tisco's assets are now large.

As end of September 30, Tisco had total assets of Bt338.39 billion, against Bt290.49 billion at the end of last year.

Lending growth for many years has been mainly driven by auto financing, in line with buoyant domestic vehicle sales. However, the auto sector has now returned to normal expansion levels, besides which there is slower growth in domestic consumption, she said.

Tisco is not so well-positioned when it comes to driving growth from the retail segment, she added.

However, opportunities arise during a crisis, and being small is an advantage for Tisco as it can more easily adjust to changing circumstances than its bigger rivals.

While it may not be so well placed in the retail segment, when the global economy recovers, there will be opportunities to lend to export and commercial customers, the group chief said.

Although the company is better placed to increase lending to small and medium-sized enterprises as well as corporates, the overall lending breakdown might be unchanged next year because retail loans still generate high yields.

In the retail segment, auto financing remains the main activity for Tisco. Although auto-loan business might not grow as much as before, refinancing products such as Tisco AutoCash were helping to drive business in the segment, she said.

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