The Closure of Offline Banking in Thailand : Case Study of SME’s Credit Users in Generation X and Y

The objective of this research was to study the behavior of SMEs' credit adoption (generation X and Y) by focusing on channel distribution in order to investigate the effect of offline channel. The research was qualitative research using focus group discussion method. There were 32 key informants which purposively selected from generation X and Y owners of small and medium enterprises and were organized into 4 groups; 1) 8 generation X owners of medium enterprises (X-M), 2) 8 generation Y owners of medium enterprises (Y-M), 3) 8 generation X owners of small enterprises (X-S), and 4) 8 generation Y owners of small enterprises (Y-S). The structured group discussion guideline has been used in data gathering and were analyzed using content analysis. The results represented that offline channel, bank's branches, demonstrated an important channel for credit adoption, particularly in generation X. The making of contract, all key informants still trusted offline channel due to personal information security concern. During the data collection, it showed that online and offline channels, were adopted. However X-M illustrated that relationship between the bank and the customers can intervene in their decision making of using the services especially when their elder generations influenced them, they just follow without any questions. The influent factors for credit adoption focused on well-trained staff and availability of updated and accurate information, data and personal information security, convenience and quickness of services throughout the process, and information tracking after making a contract