Thailand's KBank expands business in Southeast Asia

Thailand's Kasikornbank (KBank) is considering a deal to acquire Home Credit Vietnam, a subsidiary of Netherlands-based non-bank financial institution Home Credit Group, as part of KBank's plan to expand its business in Southeast Asia.

KBank của Thái Lan mở rộng kinh doanh tại Đông Nam Á

Thailand's KBank expands business in Southeast Asia. (Source: kasikornbank)

Home Credit Group plans to sell its subsidiaries in Southeast Asia, according to KBank Executive Vice President Pattarapong Kanhasuwan. The deal is at an early stage and KBank needs more time to study the feasibility and pricing before making a decision on a bid, Pattarapong said. In addition to Home Credit Vietnam, KBank is also looking at other potential deals in Vietnam.

Under its ASEAN+3 strategy, KBank aims to expand its operations in the region through a number of business models that serve both tangible and intangible growth. KBank, Thailand’s second-largest bank by total assets, opened a branch in Vietnam in August 2022. The bank aims to reach a loan balance of 20 billion baht (about 570 million USD) with 1.2 million customers in Vietnam in 2023.

Mr. Pattarapong said that for the Vietnamese market, KBank focuses on growth in three core areas, including business scale, customer base and competitiveness.

Digital technology is a key strategy that facilitates KBank’s business expansion. The bank’s subsidiary, Kasikorn Business Technology Group (KBTG), has established a technology center called KBTG Vietnam Co Ltd, which specializes in providing digital banking services in Vietnam.

In a related development, Finnoventure Fund I, managed by Krungsri Finnovate - a joint venture company of Krungsri Bank - is investing in MFast, a fintech startup with a banking service platform in Vietnam.

MFast is a financial services distribution network with 160,000 agents operating in tier 2 and tier 3 cities across Vietnam. The company provides customers with access to financial services, including loans and insurance, as well as high-value items such as home appliances from brands that typically do not have retail branches in rural areas.

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