SCBX and KakaoBank join hands in pursuing the Virtual Banking License in Thailand with an aim to provide best-in-class services to underserved population
June 16, 2023, BANGKOK: SCB X Public Company Limited (SCBX), the ‘mothership’ of Thailand’s leading financial technology group, continues to make significant strides in advancing its strategic agenda aimed at addressing the challenges faced by underserved individuals in Thailand. SCBX announces its readiness to apply for a license to establish a virtual bank with the Bank of Thailand (BOT) in collaboration with KakaoBank, the largest digital bank in South Korea. This partnership involves the formation of a consortium, in with SCBX holding a majority stake and KakaoBank holding a stake of at least 20%. Consequently, both organizations demonstrate their unwavering commitment to leveraging technology to provide comprehensive, secure, and convenient financial services to the underserved population.
Mr. Arthid Nanthawithaya, Chief Executive Officer of SCBX, said, “Income inequality remains a critical global issue, including in Thailand, where a considerable number of Thai individuals still belong to the underserved group lacking access to financial services. SCBX’s growth strategy has been built in response to opportunities to address such global pain point as financial inclusion. Upcoming virtual banks in Thailand will play a pivotal role in creating opportunities for the underserved population to access financial services. We see the crucial role of technology in developing customer-centric and flexible products with optimal cost structure, to maximize customer satisfaction.”
“We truly believe a strategic partnership with KakaoBank, a globally renowned and South Korea’s largest full-fledged digital bank, will significantly enhance our group’s competitive advantage. KakaoBank’s strengths lie in 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.”
Mr. Yun Ho Young, Chief Executive Officer of KakaoBank, said, "We are delighted to join hands as partners with SCBX, Thailand's leading financial technology group, in the realm of virtual banking. We hope to replicate the disruption KakaoBank brought to the South Korean retail banking market in Thailand with our leadership in financial technology coupled with SCBX’s thorough understanding of the market. We believe our efforts will extend the benefits of full mobile banking services to our customers in Thailand and beyond.”
In order to strengthen the consortium’s core competitiveness, SCBX and KakaoBank are jointly exploring opportunity to identify other strategic partners with the objective of winning a license to establish and operate a virtual banking business in Thailand.
About SCB X Public Company Limited
SCBX is the mothership of the financial technology business group, comprising Siam Commercial Bank, SCB 10X Co., Ltd., Card X Co., Ltd., InnovestX Securities Co., Ltd., Purple Ventures Co., Ltd., AutoX Co., Ltd., and other companies. Aspiring to become ‘The Most Admired Regional Financial Technology Group’, SCBX drives and powers the development and execution of strategic initiatives, with a particular emphasis on financial enterprises and digital technologies. This includes pursuing new business opportunities, M&A, strategic investments and partnerships. It captures some of the biggest growth opportunities with superior returns, by adapting to consumers' changing behaviors and demands in a timely manner. These industries stand to improve the overall quality of life while serving a greater purpose. The company conducts business with flexibility and prudence in governance and risk management and has the potential to compete equally in global competitions.
KakaoBank is the biggest mobile-first bank in South Korea. Established in January 2016, KakaoBank inaugurated its service to the general public in July 2017 after having obtained a final full banking license from the Financial Services Commission of the Republic of Korea in April 2017. KakaoBank aspires to become a customer-centric bank under its slogan of “Helping you use banking services easier in your daily life” by providing a variety of essential financial products. In these efforts, KakaoBank is actively utilizing latest technology such as chatbot and artificial intelligence to provide the easiest and most reliable mobile-only banking to its customers.