Kasikorn Bank of Thailand Develops Digital Payday Loan Service in Cambodia
Kasikornbank (KBank) aims to be a regional player in digital banking, with a target of 10 million users and foreign banking income representing 5% of total net income.
In Cambodia, the bank has developed a digital payday loan service, which should be available soon.
Kasikornbank (KBank), one of the largest banks in Thailand, opened its first branch in Phnom Penh in November 2016 with the aim of offering financial services to local businesses as well as businesses and individuals.
KBank entered the Cambodian financial market in November and initially the aim of the branch was to facilitate Thai companies in Cambodia in the area of business finance and fundraising for investment in infrastructure projects. towards the production of clothing and processed foods.
The bank’s international banking activity, named World Business Group (WBG), focuses primarily on Asean + 3 (China, Japan and South Korea) and has acquired 1.6 million customers this year.
A major contribution comes from its digital banking platform, said Patarapong Kanhasuwan, WBG director of KBank.
He said KBank, Thailand’s second-largest lender in terms of assets, aims to reach 10 million regional digital banking users by 2024.
The bank also expects its WBG revenue to represent 5% of KBank’s total net income in 2023, signaling five times the growth.
The bank has set an ambitious goal for the next phase, to increase the number of regional digital banking users to 50 million in five years, and then to 100 million in 10 years.
Mr. Patarapong said KBank China, the bank’s operation on the mainland, would be a model for expanding regional banking services as part of the Better Me strategy. The aim is to develop customer wealth to develop the bank’s long-term business, he said.
The bank offers digital loans in Vietnam through the K-Plus Vietnam app, which is adopted from KBank’s K-Plus mobile banking app.
KBank also plans to launch a new service based on the Banking as a Service concept as a pilot project in Vietnam, offering “beyond banking” services through a digital platform.
For the Laotian market, KBank plans to increase its QR KBank users from the existing 130,000.
Indonesia is the next market KBank plans to expand.
Mr. Patarapong said the bank has established a regional ecosystem for business operations in China, Vietnam and Indonesia, and is exploring new opportunities in digital assets.
KBank calls this business growth direction Metamorphosis, based on a business and digital transformation in line with the digital age, geopolitics and the global trend of environment, social governance and corporate governance .
Co-Chairman Pipit Aneknithi said the bank has explored new business opportunities in digital assets through several avenues. As the global digital landscape evolves, he said there are new opportunities for the Thai economy, local businesses and banking at KBank.
“In the digital age, the crypto-economy and digital financial services will be the new area of growth for the Thai economy. The country has made a lot of progress in these areas in the region, ”Pipit said.
The financial sector currently contributes around 6-7% of the country’s GDP, compared to double-digit figures in Singapore. As a result, the bank sees more opportunities to develop growth in Thailand in the digital age.