KBank’s HCMC branch increases capital by 2.5 times

Leading Thai lender KBank is doubling down on the expansion of its operations in Vietnam as the country’s central bank has granted approval for its Ho Chi Minh City Branch’s capital increase of more than 2.5 times to 9.6 billion baht ($285 million).

Empowered by this capital expansion, KBank will become one of the 20 largest banks in Vietnam in terms of asset size by 2027.

KBank, or Kasikornbank, said this capital hike is aimed at supporting expansion via its role as a funding source for business owners, including large corporate customers and retail business operators.

This move will also strengthen the lender’s transactional ecosystem where its services are offered, and develop its IT structure.

Chat Luangarpa, KBank executive vice president, said with his bank’s determination to be a major player in the Vietnamese market, the Thai lender is well-prepared to serve all customer segments, including large organizations and businesses, SMEs, and retail clients.

“Emphasis is placed on SMEs and retail customers, which are numerous in Vietnam so that they can operate their businesses with greater efficiency toward becoming large-scale enterprises in the future,” he said.

“KBank will employ its experience and expertise in the fields of technology, risk management, regional connectivity and creation of business partnerships to deliver the most responsive financial services for the maximum benefit of all customers.”

The bank is getting ahead with the expansion of its services to reach local customers at all levels while also offering business opportunities, particularly to retail customers who have just started small enterprises, including local business owners, through digital loans.

The move is intended to provide customers with easier access to financial services and loans by leveraging KBank's competency in digital and mobile banking in Thailand to further develop products like KBank Biz Loan via the K PLUS Vietnam application for retail stores in Vietnam.

Alternative data will be used to help KBank deliver new services to underbanked customers, a significant customer base in this region, the lender said.

KBank has set its sights on increasing the number of K PLUS Vietnam users to 1.3 million from the current 470,000 by the end of this year.

KBank, ranked among Thailand’s top three banks by assets, opened its HCMC branch, Vietnam’s economic powerhouse, last August.

In February, the Thai lender embarked on a strategic cooperation partnership with Vietnamese financial services company F88 to tap unbanked and underserved people in the market.