SCB deepens push into fintech with fund outlay

SCB, through its fintech subsidiary Digital Ventures, announced this week a “significant investment” in Dymon Asia Ventures, the fintech-focused venture capital arm of Dymon Asia Capital. 
Singapore-based Dymon Asia was ranked by Bloomberg as the 10th-best-performing hedge fund in Asia for 2014.
SCB said the investment marked a major step by the bank to expand its network of venture capital interests and “gain comprehensive insights into fintech investment” worldwide.
Thana Thienachariya, executive committee chairman at Digital Ventures, said: “Our investment in Dymon Asia Ventures will enable fintech start-ups in Singapore and Southeast Asia to have greater access to funding while allowing us to gain first-hand knowledge, market updates and insights about the business. “Through the partnership with Dymon Asia Ventures, we will be able to start growing a fintech global network which, we believe, will give us more knowledge to help SCB and its customers in the near future.”
Dymon Asia Ventures focuses its investment on early-stage fintech companies across Southeast Asia. 
The fund has been prioritising business-to-business investments in credit, asset and wealth, insurance and so-called blockchain technologies. It said it was conducting due diligence on more than 10 high-potential companies offering new investment opportunities.
“SCB’s leading strategic position in our fund reflects its mission to enhance the uses of financial technology and its relationships in Thailand and the wider fintech network,” said Jinesh Patel, a partner at Dymon Asia Ventures. “We are delighted to have been selected and are keen to work closely with SCB and Digital Ventures.”
Thana said: “With our commitment to building the most comprehensive fintech ecosystem in Thailand, this marks another important step in our series of investments.
“We are confident that this partnership will be a great source of insight and information in emerging technologies such as blockchain and artificial intelligence, whilst also providing real-world fintech solutions that benefit SCB corporate, SMEs and all our end customers.”
 Founded early last year, Digital Ventures claims its mission is to promote innovation in financial technology. In line with the bank’s strategy to pursue digital transformation, Digital Ventures aims to play a role in driving changes in the banking industry through investment, innovation and support for Thai businesses to grow with SCB. 
At its inception, Digital Ventures had Bt1.75 billion in capital for investment in financial technology.
Dymon Asia Capital manages about US$5.4 billion (Bt190 billion) in assets. It manages several hedge funds, including the flagship Dymon Asia Macro Fund, which is a discretionary macro hedge fund with what it calls a highly liquid strategy focusing on Asian and Group of 10 countries’ currencies, futures and interest rates. In 2012, Dymon Asia launched Dymon Asia Private Equity (SE Asia) Fund as the company’s first private equity fund. 
The managers of Dymon Asia Venture Capital Fund, Dymon Asia’s first venture capital fund, say it seeks to realise gains by making equity and equity-related investments in technology-focused companies and businesses in the financial services industry in Southeast Asia. It has a secondary focus on companies with business-to-business operations in related sectors.