Entrepreneurs’ Energy Consumption Enhancement Project - TMB Bank Public Company Limited

Background

Due to the ongoing oil price hikes and the tough competition in both domestic and global markets, businesses need to enhance their efficiency in cost management so as to improve their products’ quality and prices that are competitive with others.

 

TMB has, therefore, initiated the Entrepreneurs Enhancement Project which is a part of the Bank’s service redesigning and upgrading by shifting the focus from credit facilities service to financial solution service and knowledge-based service regarding management, production management, and energy consumption management, consequently adding more value to the Bank’s service under TMB’s concept of Better Partner Better Value.

 

Services

TMB provides advice on how to improve the efficiency of work process, technology enhancement, energy consumption, as well as financial solution service including business matching of financing providers, investors or joint venture partners.

 

Objectives of the Project

1. To strengthen customers’ competency by providing experts to advise on work process streamlining or technology, aiming at the reduction of energy cost, production cost; and consequently, boosting customers’ profitability and competitiveness.
   
2. To step up the Bank’s role, from credit facilities service to financial solution service such as business matching of joint venture partners or investors, as well as the roles in seeking supports from government and private agencies and international organizations for the Bank’s customers.
   
3. To differentiate the Bank’s service from the services of other financial institutions.
   
4. To favor the Bank’s customers, maintain customer base and expand the market.
   
5. To support government’s policy on energy saving and optimization of energy consumption

Benefits of the Project

At the initial stage, the Bank will not be able to clearly assess financial benefits of the project as the project’s concept is based on the effort to add value to the Bank’s service by enhancing the competitive advantages to customers.

 

Therefore, the benefits of this project depend upon the enhancement of customers’ business potential, which leads to the customers’ better performance and business expansion opportunity. As a result, the Bank can expand quality credits. Besides, this will reduce the chance of the customers becoming NPL or increase the chance of NPL customers turning performing, resulting in better quality of the Bank’s credit portfolio and less credit risk.
The second benefit is the broadening of relationship from the personal relationship which is the Bank’s existing strength (the relationship between Bank’s branches and customers), to a stronger and deeper relationship. As a result, it helps enhance the Bank’s competiveness in service which may partially reduce the pressure from pricing competition.

 

The next benefit is the reinforcement of the Bank’s image under the concept of Better Partner Better Value and promotion of the Bank’s corporate identity as the pioneer in promoting industry development along with support for effective energy and environmental management, which become the mainstream public concern.

 

Besides, at present, the energy saving and environmental conservation becomes the key public issues. If the project has good management, it will increase the news coverage for the Bank, so helping advertising the Bank at no cost.

 

Target Customers

The project will, at the first step, focus on the existing customers who have potential and are capable of improving their production process or technology which helps reducing the energy costs.

 

Technology Partners

Since this project requires technological knowledge and experiences, financial support with low interest rate, the Bank requires the potential partners in many aspects. Initially, Business Development Division has a goal to find alliances for 3 areas as follows:

- Energy saving technology, energy consumption enhancement, renewable energy consumption
- Technology for environmental management and conservation
- Sources of funds and financial support

At present, the Bank is discussing with many potential alliances, and recently agreed in principle with Faculty of Engineering, Chulalongkorn University (Details of the process are in the attachment.)