Shenzhen: Kasikornbank (KBank), the country's fourth-largest lender by assets, has been granted a licence to locally incorporate a bank in China, a move that allows the Thai lender to expand its network to tap into the buoyant business opportunities arising from trade and investment in the world's second-largest economy.
Kasikornbank China Co Ltd, headquartered in Shenzhen, Guangdong province, will have a service network comprising branches in Shenzhen, Chengdu, Shanghai and Hong Kong, as well as a Longgang subbranch, a Beijing representative office and a Kunming representative office.
The locally incorporated institution (LII) licence will allow KBank to more rapidly expand branches, upgrade representative offices to branches, and offer more comprehensive services to both corporate and retail customers, said Banthoon Lamsam, chairman of the board.
KBank is the second Thai bank after Bangkok Bank to receive the LII licence in China.
Trade and investment in China are expected to flourish as the economy strengthens over the next decade, he said, which is why KBank wants to build up its services there.
Under China's development plan, KBank anticipates promising business opportunities for its corporate and retail clients.
Focus will be placed on businesses involved in trade and investment with China, Thailand and Asean, and on economic connectivity within the AEC+3 region (Asean Economic Corridor plus China, Japan and South Korea), he said.
The "One Belt, One Road" policy is aimed at enhancing business links between China and the AEC, within which a number of large infrastructure projects are under construction in the region.
The Chinese government's plan, aimed at shifting China's economy towards a consumption-led market and away from an export and manufacturing-based foundation to bring its estimated growing middle-class population from 300 million to 700 million by 2020, will boost consumer finance market there.
Apart from the LII licence, KBank has been permitted to open a third branch in Pudong district in Shanghai, which is one of China's largest financial hubs and is expected to become a major global financial hub in the future.
This branch is located in the Shanghai Free Trade Zone, having trade transactions with Asean totalling US$92.2 billion (3.01 trillion baht) in 2016 -- 21% of the total Sino-Asean trade value.
KBank's regional service network in the AEC+3 and other countries include two LIIs, one in China and one in Laos, with headquarters at Shenzhen and Vientiane, respectively; seven overseas branches in Shanghai, Chengdu, Hong Kong, Longgang (the subbranch), Phnom Penh, Ban Ponesinuan and Cayman Islands; plus eight representative offices in Beijing, Kunming, Yangon, Hanoi, Ho Chi Minh, Jakarta, Tokyo and Los Angeles.
Mr Banthoon said connectivity of China, Thailand and Asean, and the digital platform to support business expansion for the bank's international banking business are KBank's main strategic focuses.
Human capital is another key factor, for which the bank will develop both human resources and technology.
Separately, Vongpat Bhuncharoen, KBank China's president, said the bank plans to apply for a retail banking licence from China's regulator in the next two years.
In the early stages of operating retail banking in China, KBank will focus on Chinese inbound tourists and Thai outbound travellers. Digital payment is the key financial service offering to the individual customer segment.
The number of Chinese tourists visiting Thailand is expected to reach 10 million this year. The market segment has high purchasing power, affording significant business opportunities for KBank, he said.
With a strong digital financial platform in China, KBank has also collaborated with the two local digital payment platform providers, AliPay and WeChatPay, offering the service to Chinese travellers visiting Thailand.
