SCBX partners with Korean lender in latest move for digital bank licence
SCBX, the financial technology business group of Siam Commercial Bank, announced an official partnership with South Korea’s largest digital bank, KakaoBank, on Friday as part of its effort to apply for a licence from the Bank of Thailand to establish a virtual bank.
SCBX chief executive officer Arthid Nanthawithaya said the partnership will involve the formation of a consortium in which SCBX will hold a majority stake and KakaoBank will hold at least a 20% stake.
Both companies have an unwavering commitment to leveraging technology to provide comprehensive, secure, and convenient financial services, Arthid said, adding:
“We truly believe a strategic partnership with KakaoBank will significantly enhance our group’s competitive advantage. KakaoBank’s strengths lie in [its] distinctive expertise in developing virtual banking business with state-of-the-art technology. The signing of a consortium agreement marks a pivotal milestone as we prepare to apply for a virtual banking license with the Bank of Thailand.”
The new partnership is also in line with SCBX's growth strategy to address financial inclusion. Virtual banks in Thailand will be critical in providing access to financial services to the underserved population.
"We see technology playing a critical role in developing customer-centric and flexible products with optimal cost structure to maximise customer satisfaction," he said.
Yun Ho Young, KakaoBank chief executive officer, expressed his delight to collaborate with SCBX and hoped to replicate the disruption KakaoBank brought to the South Korean retail banking market in Thailand.
"We believe our efforts will extend the benefits of full mobile banking services to our customers in Thailand and beyond,” he said.
According to the joint statement, SCBX and KakaoBank are jointly exploring opportunities to identify other strategic partners with the goal of winning a licence to establish and operate a virtual banking business in Thailand.
