Page 7 - ELITE PLUS MAGAZINE Vol 3

EElite+ sat down with Chatri Sophonphich of Bangkok Bank for a rare interview on the company’s history of success, business model and long-term strategies, and the likely effects of the coming ASEAN Economic Community on the region’s banking sector.E+: What factors contributed to Bangkok Bank’s history of success?Chatri: The president before me was Boonchu Rojanastien, who left the bank to be deputy prime minister and finance minister during the administration of General Prem Tinsulanonda. I was appointed to replace him as the new president on March 13, 1980.To be given the trust and confidence to take over such a position was a great honour. But to be honest, I was a little nervous. The future of the bank wasn’t in doubt, because the whole team from Mr Boonchu’s time was still there, and capable young staff had started to move up the command chain and shape the firm’s progress. But all this was around the time of the end of the Vietnam War. General Prem became Prime Minister, and many pro-communist Thais who had fled into the forest came back and turnedthemselves in. The price of oil was high, but eased over the course of the year. The overall situation was calm and stable. The economy was on the rise. The government was reliable. The bank had a new president, and a new head office. We moved from our former headquarters on Phlap Phla Chai Road to the new building on Silom Road. For me this period would become a big turning point for Bangkok Bank.We decided to launch a new marketing policy. The prime objective was to achieve dominant market share both locally and internationally, and as quickly as possible, under the slogans “Puen koo kid mitr koo baan” (Your partner and trusted family’s friend) and “Rao tong pen ti nueng” (We have to be number one). From the deposits of 1 billion baht, we challenged the branches to meet a target of 2 billion baht, then to 10 billion baht, andbranches that achieved the targets were handsomely rewarded. We worked very hard but also enjoyed our jobs. On Saturdays and Sundays staff members would meet up and walk the streets to promote the bank’s services and look for customers.Our new marketing strategy was amazingly successful, especially during the first five years, before we toned it down to steady our growth. I was in the position for 12 years, from 1980 to 1992, and Bangkok Bank expanded in every respect: 12-fold, or 1,200 per cent, in terms of net profit; seven times more in authorized capital; a six-fold increase in loans and deposits; and a five-fold increase in overall assets.E+: Did other banks also enjoy rapid growth during that period?Our success made it look like we were the biggest player on the market,Elite+ 5