Always in stealth mode, Kasikorn Bank has announced its latest venture; fintech in China.
The bank has launched “Kasikorn Vision Information Technology Company Limited” in Luohu District, Shenzhen, China. It’s holding 100% of the company and registered with 300 million yuan (approximately THB 1.3 billion).
The driving forces behind this venture? To build out and develop Kasikorn’s technology information, research and trial new business models & capabilities to boost K-Bank’s financial technology unit.
The new unit will also see testing & trialing of different digital prototypes with a focus on seeing new business models that could apply to an evolving digital economy.
The Vision Information unit has a 5 year plan:
Part 1: The first year will mainly focus on building out a team, laying out the business blueprints & aligning strategy. So, this is the “post it” year.
Part 2: After 2-3 years of running the unit, it’s time for growth. This is also the period for integrating new developments and leveraging know-how from China and linking it back to Kasikorn Bank
Part 3: Following 4-5 years of presumably successful operations, the unit will hopefully become one of the leading fintech ventures in the region. Kasikorn is also eyeing to build a lab to support and empower financial technology innovation.
Doesn’t that sound like a bunch of buzzwords? We think because K-Bank is laser focused in digital innovation and have a series of successful deliverables to show for it, this venture should be something to keep an eye on.
The big picture, there’s more to it than just fintech
The new venture has the potential to boost ASEAN’s capabilities in financial technology, according to Khun Krating Poonpol, President of KBTG, K Bank’s business technology unit.
What else? Shenzhen has the capability to become the center for China’s strategic action plan; the Greater Bay Area (GBA) which involves Guangdong, Macau & Hong Kong. The GBA trifecta has incredible strategic importance to China, and is the gateway for an integrated business hub in Asia.
K Bank’s eye for prime real estate is also telling. Luohu District is home to a bustling financial hub, where a handful of registered financial institutions are founded.
Luohu District is the earliest developed urban area of Shenzhen Special Economic Zone, and an important part of the CBD of Shenzhen.
This is K Bank’s foray into the big boys league in China.
It’s all about location, didn’t you know?