Kasikornbank’s ASEAN ambitions grow: Eyes on Home Credit Vietnam

Kasikornbank (KBank), the second-largest lender in Thailand by total assets, is in preliminary discussions to acquire consumer finance provider Home Credit Vietnam. This move is part of KBank’s ASEAN business expansion. Home Credit Vietnam belongs to the Netherlands-based non-bank financial institution, Home Credit Group, which is planning to offload its ASEAN businesses.

KBank executive vice-president Pattarapong Kanhasuwan revealed the deal is in the early stages and the bank needs to spend more time studying the feasibility and pricing before making a bidding decision.

“In addition to Home Credit, we are exploring other potential deals in Vietnam.”

KBank launched a branch in Vietnam in August 2022, under the ASEAN+3 strategy, aimed at regional expansion through various business models for both organic and inorganic growth. By 2023, the bank aims to reach 20 billion baht in outstanding loans and a customer base of 1.2 million in Vietnam.

KBank’s strategy in Vietnam centres on business scale, customer base, and competitiveness, with digital tech as a key driver. Its subsidiary, Kasikorn Business Technology Group (KBTG), established KBTG Vietnam Co Ltd to provide digital banking services.

Krungsri (Bank of Ayudhya) is acquiring a 75% majority stake in Home Credit’s consumer finance business in Indonesia and the Philippines, with an initial consideration of 474 million euros, aligning with its ASEAN expansion.

Finnoventure Fund I, managed by Krungsri Finnovate, is investing in MFast, a prominent fintech startup in Vietnam. MFast recently secured US$6 million in Series A funding, with participation from new investors Finnoventure Fund I and Headline Asia, along with returning backers Do Ventures, JAFCO Asia, and Ascend Vietnam Ventures.

MFast operates Vietnam’s leading financial services distribution network with 160,000 active agents serving customers in tier 2 and tier 3 cities. They facilitate access to loans, insurance, and high-value items, bridging gaps left by brands with no rural branches.

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