SCB touts tech, rejigs subsidiaries
Siam Commercial Bank (SCB) has restructured its tech subsidiaries as it seeks S-curve growth in the digital age and pursues the bank’s goal of becoming “a tech firm running a banking business”.
The bank has upgraded a former digital lab, SCB 10X, to become a wholly owned tech investment holding company, with controllable stakes in three tech firms: Digital Ventures (DV), Abacus and Monix, said SCB 10X chief executive Arak Sutivong.
SCB 10X has also invested in and forged partnerships with 13 tech companies and startups globally, Mr Arak said.
The company has received a budget of 20 billion baht to make such investments in the next three years.
With the spin-off structure, SCB hopes to avoid any impact on its own profitability.
Under the venture capital builder model, SCB 10X will build up tech startups and offer financial assistance and other resources and know-how.
On average, SCB 10X plans to build up at least two tech firms a year. The company will offer an initial investment of up to US$10 million and own a 60-70% stake in each tech company.
If tech firms need to improve their business potential in the future, they can raise public funds by themselves.
“DV and Abacus are planning to initially raise public funds worth $20-30 million each and such fund mobilisation is expected to take place late this year,” he said.
DV has adopted blockchain-based technology to improve the trade finance process of supply chain business, while Abacus has focused on artificial intelligence.
Monix has adopted a digital lending platform, in collaboration with
Chinese tech unicorn Abakus, focusing on underbanked customers through behaviour analysis and aims to offer digital loans through its mobile app in the second quarter.
SCB has made efforts to transform the century-old bank into a techdriven organisation operating banking business.
The bank has undertaken “Going Upside Down”, which focuses on five areas: trimming the bank’s size, highmargin lending, digital acquisition, data capabilities and embarking on a new business model.
DV and Abacus are planning to raise public funds of $20-30 million each.
ARAK SUTIVONG
Chief executive, SCB 10X