KBank launches own FinTech unit
KASIKORNBANK hopes to start seeing financial innovation streaming from its new subsidiary Kasikorn Business-Technology Group in a year or two.
The bank yesterday held the grand opening of the office of KBTG on Chaeng Wattana Road as the place for exploring innovations to ride the financial-technology (fintech) wave.
Based on data compiled by KBank, digital banking transactions via mobile phones and the Internet at the bank zoomed to 1.13 billion in 2015 from 168 million in 2011 and are expected to reach 7.9 billion in five years.
Even though financial transactions at KBank’s branches increased to 188 million last year from 166 million in 2011, the figure may decline to perhaps 153 million in 2020 because of the rapid rise in digital banking.
The value of digital banking transactions at KBank is expected to grow 10 times to Bt30 trillion by 2020 from Bt4 trillion in 2015.
This boom in global digital banking transaction is forcing banks to develop fintech.
Banthoon Lamsam, chairman and chief executive officer of KBank, said yesterday that changes in financial technology together with the emergence of fintech firms and start-ups would offer much more convenience for customers.
This was an important factor for KBank in deciding to establish KBTG with the aim of boosting information-technology management to enhance competitiveness and maintain business leadership.
The bank will set aside about 10 per cent of its net profit, or about Bt4 billion a year, for its IT budget, of which 1-2 per cent will be earmarked for innovative products and services.
The bank acknowledges that it should set up a new environment with a new culture to promote the ideas of KBTG staff and partners.
KBTG is also eager to support the government and the national e-payment master plan.
“We should think outside of the box and seek knowledge from partners globally,” Banthoon said.
“We don’t know if the output from collaboration will be right or wrong. However, the pressure [to produce output] is on everyone.”
KBank hopes KBTG will be a key mechanism to develop the digital economy and strengthen the bank to be a leader in providing comprehensive digital banking solutions as well as tech start-up operations.
Teeranun Srihong, president of KBank and chairman of KBTG, said that over the next five years, KBTG would focus on six areas.
They are the Internet of Things, which enhances connection and communications between devices and tools; world-class design; application programming interfaces; advanced mobile programming; “blockchains”, or shared, encrypted transaction ledgers; and machine learning.
