KASIKORNBANK (KBank) has earnestly expanded its business in Vietnam while setting its sights on becoming one of the top 20 banks in terms of assets in this market. Aiming to emerge as a full-fledged financial service provider in the transactional ecosystem across all customer segments, including corporate businesses, medium businesses, retail trade operators and individual customers, KBank has set a target of 400 million USD in net income or approx. 13.2 billion Baht, with outstanding loan totaling 180 billion Baht and a customer base of 8.4 million in Vietnam within 2027.
Chat Luangarpa, KBank Executive Vice President, said, “Vietnam’s economic system has lately shown substantial development. As evidenced, its economy recorded staggering growth of 8.02 percent in 2022 – its fastest growth in 25 years. Vietnam’s GDP is ranked 30th globally. Likewise, the Vietnamese banking industry, albeit relatively new compared to regional peers, is seeing the fastest growth in the world. What’s more, Vietnam has enormous potential thanks to ample domestic resources. The country is therefore projected to emerge as a newly industrialized country (NIC) within 2030 and is set to become a medium- to high-income economy and developed country within 2045.
Given its huge potential, KBank considers Vietnam an attractive market for investment. Vietnam has a population of more than 100 million – mostly working-age people, a segment which has seen rapid growth in recent years. It is estimated that more than 69 percent of the working-age population has no bank account, the highest percentage in Asia. For this reason, the Vietnamese government is pressing ahead with the development of digital financial services, with the aim of promoting financial inclusion. Presently, the amount of digital settlements in Vietnam is one of the highest in Southeast Asia. Additionally, the Vietnamese government is promoting the country as a new technology hub for Asia, a move which has attracted numerous foreign investors.
That includes KBank, which in recent years has expanded its services in Vietnam, including the provision of full-fledged financial services within the transactional ecosystem for all customer segments, ranging from corporates to medium-sized companies, retail trade operators and retail customers. KBank aims to become one of the 20 best banks in Vietnam by 2027.
Chat added, “To become one of the 20 best banks in Vietnam by 2027 in terms of assets, income and customer base, KBank will provide full-fledged financial services within the transactional ecosystem to meet the diverse needs of local customers. This includes the K PLUS Vietnam application offering users greater convenience in conducting transactions through various features and an operating system developed by KBTG Vietnam (KASIKORN BUSINESS-TECHNOLOGY GROUP Vietnam), such as near-field communication (NFC) technology that can read data from national ID cards with increased accuracy, and liveness detection technology, which can detect and prevent identify fraud in the application process.”
Moreover, KBank in Vietnam has supported local business operations through the development of electronic data capture (EDC) devices and other products that meet the needs of Vietnam’s cashless society, and facilitate payments via numerous channels such as debit and credit cards, and all types of scanning via QR code, with the aim of offering customers seamless transactions. To offer retail customers greater convenience in conducting financial transactions, including payments, KBank is scheduled to introduce a new debit card in Vietnam in July 2023. The debit card can be applied for easily via the K PLUS Vietnam application. Once approved, the debit card will be sent to the applicant’s home with no need to go to a bank branch.
Another prioritized group is corporate customers. KBank has offered internet banking services for companies to conduct cash management and payroll transactions with ease. Focus is also on digital lending with the launch of KBank Biz Loan for small and medium-sized enterprises to make financial transactions conveniently via K PLUS Vietnam. An additional service is KBank Pay Later for retail customers who require a digital loan for online purchases, through our partnership with the ‘Meta’ local e-commerce platform that sells electronic products.
In addition, KBank is gearing up to reach new business partners through KASIKORN VISION CO., LTD. (KVision), which has explored potential companies or startups to jointly invest in and develop businesses together. Notable joint investments with several companies in Vietnam include Sendo, KiotViet, Seedcom, Jio Health, and Selly. Another interesting startup is Lich Viet – a popular horoscope application with more than 13 million users.
To achieve its goals, KBank is determined to deliver a comprehensive financial experience to the Vietnamese people. As evidenced, our banking expertise is guaranteed by our regional financial awards; success as the number-one mobile banking application in Thailand with more than 19 million users; recognition as the best digital banking; and regional networks with more than 70 partners across Europe and Asia. Thanks to its experience, potential and international standards, KBank is capable of providing financial services that can meet the growing demand in Vietnam. By 2027, the Bank aims to be among the top 20 banks by asset size in Vietnam, earning net income of up to 400 million USD or around 13.2 billion Baht, having outstanding loan of 180 billion Baht, and 8.4 million Vietnamese customers.