Thailand’s Siam Commercial Bank is reportedly planning to spin-off some of its fintech businesses to improve capital flow.
The lender is exploring the move due to ongoing slack in conventional lending operations, Bloomberg reported.
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In an interview, Siam Commercial co-president Orapong Thien-Ngern told the publication: “We will spin off some of them to allow them more freedom and independence, including raising their own funds from other investors.”
He did not name the technological divisions which will be hived-off. However, he added that one of the fintech firms possess the potentiality to achieve unicorn status with valuation of $1bn.
The lender counts Digital Ventures and National ITMX as its main technology units, according to its 2018 annual report. Digital Ventures primarily invests in startup firms, while National ITMX is a payments services provider.
Orapong was quoted by Bloomberg as saying: “Thai banking like most other countries is a sunsetting industry, as existing lenders and new players are competing for limited pools of customers.
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By GlobalData“Venture capital and technology investments will be the key survival strategies for SCB in attracting new customers and boosting earnings.”
Siam Commercial Bank is the third largest lender in Thailand by assets. Established by royal charter in 1907, the lender caters to retail, corporate and SME customers.
Recently, the Thai-bank completed a $1.3bn programme investing in artificial intelligence and other technologies.
It plans further investments in artificial intelligence to streamline data and transaction processing operations.
