10 Introduction Customers Social Governance Appendix Environment Sustainability Report 2021 5. Optimize Capital Utilization and Liquidity Management The Bank is strongly committed to delivering the level of profit expected by investors and has established a target to earn the same level of ROE as Thailand’s top bank performers within the next three to five years. To achieve this, the Bank cont inues to focus on selectively growing the balance sheet to generate incremental return. 6. Enhance Digital Capability and Solutions The shift in customer behavior towards a more digitally-led lifestyle and rapid technological development is reflected in the increased preference for financial transactions that are conducted throughdigital channels. Meanwhile, the COVID-19 pandemic also played a role in accelerating this transformation by creating a heightened awareness of existing digital financial services offered by the Bank. In response, ttb has been investing in the development of the Bank’s IT infrastructure, cyber security systems, customer data privacy systems, and employee competency to build a corporate culture centered on digitized working procedures and operations; thiswould acceleratetheproductandservicedevelopment cycle and enhance customer experience. The Bank also places importance on digital capabilities by continued investments into the digital platform and related technologies to become Thailand’s top three digital banking serviceproviders-oneof ttb’s business priorities. ttbhas since rolledout a “Digital Frist” operating model to drive digital adoption while pursuing continuous improvements of the omni-channel customer journeyinorder tocopewithcustomers behavioral shift. Subsequently, the Bank has also been moving towards a decentralized innovation process that fosters a more rapid launch of new solutions across the Bank. This will not only help increase the Bank’s agility in driving innovation but also decrease the cost-to-serve. The Bank then aims to digitize and migrate in-branch services to a specific digital channel under the Digital-first” concept by creating a humanized touch in each branch-presence which is also referred to as the “humanized digital banking”. To provide the best possible customer engagement in response to consumers’ evolving behavior and increased expectations, ttb’s digital strategy has moved beyond traditional banking services to incorporate ecosystem play, which was developed with ttb’s strategic partners. The ecosystem play will be built around the Bank’s strong market presence and competitive advantage such as the automotive industrywhere ttb is themarket leader in automotive lending that has a high network coverage of dealers and automotive supply chain. The ecosystemplay will also act as an engagement tool for our customers to lessen the burden for owing a car. 7. Capture Synergy Realization Capturing realized benefits derived from post-merger integration include benefits from balance sheet synergies, cost synergies, and revenue synergies. 1) Balance sheet synergies are captured through balance sheet optimization, which allows the Bank to efficiently utilize its assets and raise funds. 2) Cost synergies arise from a greater economy of scale, specifically through the integration of key business support areas, namely, IT infrastructure investment, business operations, overlapped retail branches, and redundant back-office employees. 3) Revenue synergies foster the ability to introduceamoreextensive rangeof financial products and services to cater to customer needs and serve a larger customer base of more than 10 million, which will strengthen the Bank’s ability to maximize its income generation. The EBT (Entire Business Transfer) was completed in July 2021, after which the Bank sets its target to maximize the revenue potential which al igns with the newly, integrated customer base. This is done by focusing on our customers’ financial well-being and a stronger value proposition delivered by our top-tier digital platform.
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