Thailand's third-largest bank by assets, which has been investing in artificial intelligence, digital platforms and other technology to compete with fintech startups, wants to monetize its fintech units.
Siam Commercial Bank (SCB) says one of its fintech units has the potential to be a «unicorn,» a term for privately held startups with a valuation of $1 billion or more, as it plans to spin off these divisions.
We will spin off some of them to allow them more freedom and independence, including raising their own funds from other investors,” SCB co-president Orapong Thien-Ngern told «Bloomberg» (behind paywall) on Wednesday.
According to the publication, the technology units that could be monetized include corporate venture capital division Digital Ventures and payments services provider National ITMX.
«Sunsetting Industry»
Thien-Ngern called Thai banking «a sunsetting industry,» as both established institutions and new players are competing for a limited customer pool.
He said that venture capital and technology investments are «key survival strategies» for the bank.
