Thailand's KBank Unveils Early Retirement Plan Amid AI Disruption

Special Retirement Offer for Mid-Career Staff

Kasikornbank (KBank), Thailand’s third-largest lender by assets, has rolled out a voluntary early retirement programme for employees aged 45 to 59. The decision comes as the banking sector adapts to rapid advances in artificial intelligence (AI) and shifting customer behavior toward digital platforms.

The one-time scheme, open for applications between 15 August and 7 October, grants participants compensation along with additional allowances. Staff aged 45–49, 50–54, and 55–59 will receive the equivalent of 8, 10, and 12 months of salary respectively.

The lower age threshold of 45 surprised many, sparking discussion on the challenges mid-career employees face in reskilling for the digital era.

Bank Seeks Higher Productivity

Sastra Mungkornusawakul, executive vice-president at KBank, said the main goal of the special programme is to strengthen productivity and adapt to new technologies. Traditionally, the bank has only offered early retirement to staff aged 55 and above, while keeping the official retirement age at 60.

“AI disruption arrived faster than expected, accelerating over the past two years,” Sastra noted. He added that some staff had requested the option to leave early as they struggled to adjust to digital systems and AI integration.

The bank has not set a target for participants, but expects interest could exceed the numbers seen in previous years, where most applicants were in their late 50s.

Digital Growth, Branch Decline

KBank currently employs 31,100 people, including 18,300 directly under the bank. While the organisation trims costs and adapts to competition from three new virtual banks, its mobile app K-Plus continues to gain users, now reaching 23.4 million.

Bjoertvedt, CC BY-SA 3.0, via Wikimedia Commons

In contrast, its physical branch network has dropped to 756 outlets worldwide, reflecting broader industry shifts toward online banking. KBank aims to maintain its cost-to-income ratio in the low-to-mid 40% range this year.

Support for Reskilling Efforts

Despite the retirement option, KBank insists the programme is not designed to set a new industry benchmark. Instead, the lender says it will continue investing in training to help staff adjust. Initiatives such as K-Advice allow retirees to return as independent financial advisors, sharing their expertise with customers in a new capacity.

The Bank of Thailand echoed the importance of such programmes, with assistant governor Suwannee Jatsadasak noting that early retirement can help businesses manage costs and strengthen competitiveness. She highlighted how digital disruption and virtual banking are pushing traditional institutions to reimagine their operating models.