Kasikornbank ties up with state postal service agency to tap the rural unbanked

Customers will soon be able to deposit cash at post offices.

Kasikornbank has named the country’s national postal service, Thailand Post, as an agent for its banking services which will enable the bank customers to deposit cash into their accounts within the convenience of the country’s wide network of 1,300 post offices, reports Nikkei Asian Review. 

The bank has already started the initial phase of the partnership at 964 post offices, with additional service like cash withdrawal to be rolled out by 2019.

The move aims to woo the country’s rural unbanked population as well as the online merchants and shoppers who frequent the post office to send or delivery packages.

"Customers can receive their parcels at the post office, examine the products and pay the merchant on the spot by depositing money into the merchant's bank account," Kasikornbank President Patchara Samalapa told reporters on Monday.

Thailand's central bank amended regulations earlier this year to let commercial lenders appoint banking agents that can offer deposit and withdrawal services on their behalf. CP All, the operator of the country's 7-Eleven stores, is also considering becoming a banking agent.