Kasikornbank branches out into Vietnam aiming at top 20 by 2027

Breaking new ground in its expansion strategy, Kasikorn Business-Technology Group (KBTG), a subsidiary of Thailand’s Kasikornbank, has laid the foundation stone for KBTG Vietnam in Ho Chi Minh City. With an aim to serve the surging regional digital expansion of its parent conglomerate and to attain a spot amongst the top 20 banks in Vietnam by 2027, this development is a crucial one for the bank.

KBTG Vietnam is expected to spearhead the technology advancement of Kasikornbank to offer services in Vietnam and beyond. This marks the second establishment of KBTG in the Association of Southeast Asian Nations (ASEAN) bloc after Thailand and third in Asia following K-Tech in Shenzhen, China.

KBTG’s vision for the Vietnam branch projects the recruitment of more than 500 staff within a timeline of three years to metamorphose into a regional tech company as projected by 2025.

Speaking at the inauguration ceremony of KBTG Vietnam on Thursday, June 22, Kasikornbank’s Chief Executive, Kattiya Indaravijaya, highlighted the significance of the AEC+3 region. Citing the region’s substantial consumer market, high working-age population, and escalating digital lifestyle as primary boosters for regional economic growth, she explained Kasikornbank’s expansion strategy.

Kattiya detailed the bank’s objectives of exploited business opportunities for Thai businesses in the region, and underlined the importance of technological development and a robust workforce in achieving those goals. She said…

“KBank aims to build up a business and technological network in order to deliver digital services to local users with greater flexibility.”

KBTG Vietnam, after its official launching in November 2021, envisages enhancing the capital from 5.9 billion baht (US$167,376,000) in 2023 to 9.9 billion baht (US$280,850,000) by 2027.

Voranuch Dejakaisaya, Executive Chairman of KBTG, shed light on the yearly allocation of 10 billion baht (US$283,700,000) for technological investments, supporting Kasikornbank’s dream of becoming a regional digital bank. She emphasized KBTG Vietnam’s need for synergy within the group to innovate in the realms of blockchain and decentralised finance across the region.

Leveraging Vietnam’s projected considerably high workforce of 71 million by 2030 as opposed to Thailand’s 45 million, KBTG seeks to make enhancements in key regions. The country had over 22.6 million science and engineering graduates as of 2020, compared to Thailand’s 19.6 million.

KBTG encompasses nine subsidiaries with over 2,100 employees developing innovative products and an Information Technology (IT) delivery system that supports 20 million users of K-Plus, Kasikronbank’s flagship mobile banking app. The bank projects the app users to double by 2027.

Underscoring KBTG’s revenue gains of roughly 5 billion baht (US$142,000,000) from new S-curve innovations, Thanussak Thanyasiri, Managing Director of KBTG Vietnam, declared the company’s plan to recruit over 200 IT staff by 2023 and total employees exceeding 500 by 2025. Additionally, they aim to jointly upgrade K-Plus with the 600,000 existing users in Vietnam, setting a target of reaching 1.3 million users this year.

In addition to establishing its second office in Hanoi to access potential tech talent, the co-location collaborations strategically position them to gain access to technology knowledge from the talent pool in each area.

Ruangroj Poonpol, Chairman of KBTG, emphasised the significance of becoming an artificial intelligence (AI) first company. He assessed how critical it is to employ AI to accelerate business expansion and handle worker shortage. With an estimated requirement of 3,500 IT staff, he envisions the brand attracting regional talent and creating a conducive working environment for hybrid and creative collaboration.

Thailand boasts of being the ninth-largest investor in Vietnam with a total investment exceeding 485 billion baht (US$13 billion).