INVESTMENT IN PEOPLE:
THE SUSTAINABLE APPROACH TO FUTURE BANKING
Krungthai Bank Pcl.
Project Commitment to Sustainable Development Goals (SDGs)
INTRODUCTION
“The People Transformation Initiative” is aimed at creating an innovation culture and driving improvements for the efficiency and effectiveness of the organization, ensuring solid performance to weather digital disruption and a VUCA world. It is divided into three areas: People Skills Transformation, Leadership & Potential Transformation, and Culture Transformation.For the People Skills Transformation, Krungthai Bank established key focus areas of development for business units in each business cluster and reviewed competency models to ensure that its employees are equipped with the skills required to work in digital banking and are ready to be assigned new roles and functions. They are then upskilled and reskilled accordingly. Simultaneously, efforts are made to recruit external talents, locally and globally, to bring in new skills required for a future-proof workforce.
As for Leadership & Potential Transformation, Krungthai Bank puts emphasis on developing transformative leadership skills among team leaders, encouraging their participation in team development. The bank also encourages them to coach, mentor, and give feedback to their team members.
Culture Transformation involves driving innovation culture by employing design thinking and OKRs to implement business units’ sustainability action plans. This process also includes holding corporate hackathons to encourage innovation and an agile culture as well as finding hidden talents within the organization.
FRAMEWORK AND STRATEGY
Ensuring that employees have all the skills and mindset needed to do their jobs and implement the bank’s strategies is one of the key factors to efficiency and productivity, hence the organization’s good performance and success. To achieve this, the bank focuses on developing future skills, ensuring that the leaders can drive performance and enhance their teams’ potential, and creating a culture that promotes innovation. The key tool to support the implementation of this project is the bank’s employee mobile application, ONE Krungthai.The Human Resources and Corporate Governance Group oversees the “People Transformation Initiative,” establishing frameworks for development and providing the necessary tools and platforms. They coordinate with business units and have a strong monitoring program in place to ensure effective implementation throughout the organization.
ACHIEVEMENT AND IMPACT
The staff productivity ratio, which is calculated by dividing revenue by personnel expense was 6.65 in 2022, improving from 5.64 in 2020. Besides that, human capital ROI also increased from 4.5 in 2021 to 5.28 in 2022. Other achievements of this project include two corporate hackathons, in which a total of 282 employees generated 66 ideas for new business models or process improvements. As a result, 5 projects have been launched commercially. Finally, the bank’s employee engagement score from organization-wide biannual surveys has improved from 90.80% in 2021 to 91.60% in 2022.FUTURE DIRECTION
Moving forward, Krungthai Bank will continue its work to ensure that employees have all the skills needed to do their jobs, improving their efficiency and productivity, hence the organization’s good performance and success.Besides that, investing in people development is a never-ending process and has to be reviewed regularly, both in parts and as a whole, to ensure that the bank’s employees always have the ability and the will to execute its strategies. The framework and tools established in this initiative will be the foundation for future skill development, while the skills and competencies required will be reviewed to make sure that they are suitable for the current operations. This will lead to a situation where Krungthai Bank’s employees are future-proof.
Established in 1966, Krungthai Bank PCL. (Krungthai Bank) is a listed
government-owned commercial bank in Thailand. Aspiring to achieve
full-scale digital banking, the bank has been investing heavily in digital
infrastructure and technology to outpace disruption and better serve its
customers in the digital era.
With the Vision of “Growing Together for Sustainability”, Krungthai Bank is committed to helping Thai people gain access to financial resources and develop their financial literacy to strengthen the grassroots economy. It is also constantly developing financial solutions that support customers’ sustainable growth while shaping a better society and generating satisfactory yet sustainable returns to shareholders.
With the Vision of “Growing Together for Sustainability”, Krungthai Bank is committed to helping Thai people gain access to financial resources and develop their financial literacy to strengthen the grassroots economy. It is also constantly developing financial solutions that support customers’ sustainable growth while shaping a better society and generating satisfactory yet sustainable returns to shareholders.
