TMB-Thanachart Bank (TMB-TBank) expects to complete the integration of the two financial entities by July this year, offering employees an early retirement (ER) package with a maximum compensation of 17 months.
The auto loan portfolio, the core business of TBank, is in the process of transferring to TMB-TBank following the crossover of TBank's credit card loan portfolio, said Piti Tantakasem, chief executive of TMB-TBank.
The bank is also integrating TBank's mobile banking app, Thanachart Connect, and TMB's electronic deposit service, ME by TMB, to TMB Touch digital banking platform, a single integrated app, said Mr Piti.
TMB plans to submit its proposal at its shareholders meeting in April to rename the equity abbreviation on the Stock Exchange of Thailand from TMB to TTB.
The merged bank wants to then rebrand and rebuild its image.
TMB-TBank aims to explore new business opportunities given the digital disruption in the banking landscape and the pandemic, he said.
In response to declining fee-based income from transactional banking services in the digital era, the bank has been searching for new income sources, especially from mutual fund and bancassurance businesses.
Under a 15-year strategic partnership agreement with Prudential Life Assurance, the bank plans to revamp its bancassurance business model and expand financial services in this segment.
Thais applied for 10 million Covid-19 insurance policies in 2020, higher than overall health insurance policies at 8 million in total, according to TMB-TBank.
In 2021, Thailand is expected to become an aged society, with the number of people at least 60 years old increasing to 20% of the total population. The country is expected to become a "super-aged" society in 2031, with 22% of people 65 or older.
Medical expenses in Thailand have increased 9% annually over the past several years.
The merger has led to staff upheaval, as some employees do not agree with structural changes.
The bank's ER programme is based on labour laws and pays employees compensation of 13 months and up to four more months of compensation, in line with the number of years applicants have worked for the bank, said Mr Piti.
After the ER scheme is finalised, the bank can better manage human resources based on total headcount, he said.
There are more than 10,000 employees and over 700 brick-and-mortar branches nationwide between the two financial entities.
