Major restructuring reported in Thailand’s banking system

Over the last five years, the total banking workforce in Thailand has shrunk by over 15%, a reduction of more than 23,000 people.

A KBANK branch (Photo: bangkokpost.com)

Bangkok (VNA) - Thai commercial banks are facing a new period of significant change, driven by both economic challenges and technological disruption.

The restructuring has already begun, with Kasikornbank (KBANK) launching a voluntary early retirement programme.

Data from the Bank of Thailand (BOT) shows that personnel expenses for the entire banking system fell by 2.5% in the second quarter of 2025 compared to the previous quarter.

Furthermore, the number of employees decreased by 0.74% in the same period. Over the last five years, the total banking workforce has shrunk by over 15%, a reduction of more than 23,000 people.

According to an insider, banks are responding to three key pressures. First, profits are expected to fall in the first quarter of 2026 due to a downward trend in interest rates and a weak economy. Second, the upcoming launch of three new virtual banks is intensifying competition, forcing traditional lenders to cut costs and restructure quickly. Third, the BOT’s new "Your Data" initiative, set to launch in 2026, will allow customers to easily share their data with other financial institutions.

Banks are advised to reduce their workforce by 15-20% over the next three years, with a potential reduction of over 30% in the next four to five years./.

VNA