Bangkok--14 Jul--KASIKORNTHAI BANK
KASIKORNTHAI BANK Limited in Lao PDR has extended loans and offered financial management services to Aeon Leasing Service (Lao) Co., Ltd. to support its retail and motorcycle financing business there. Both parties are also ready to jointly develop payment accepting channels and other innovative services, in a bid to assist Thai investors in Lao PDR.
Mr. Suwat Techawatanawana, KBank First Senior Vice President, said Aeon Leasing Service (Lao) Co., Ltd. has been granted LAK-denominated loans by KASIKORNTHAI BANK Limited in Lao PDR to be used for its retail and motorcycle loan businesses in the country.
Aeon Group is a successful financial conglomerate in Thailand, offering personal loan and credit card services. Given the promising trend of Lao PDR, the group's business expansion into this marketplace is expected to bring fruitful results. Aside from financial support, KBank will join hands with Aeon to develop products and services such as innovative payment channels to facilitate its customers in Laos.
Mr. Shiro Kitano, Managing Director, Aeon Leasing Service (Lao) Co., Ltd., said that this cooperative effort with KBank would be supportive to the company's business, making it more flexible in its operations. Aeon Group now centralizes its business management of the ASEAN region in Thailand. After branching out into the Laotian market, the conglomerate may contact KBank either via KASIKORNTHAI BANK Limited or at its Bangkok headquarters. The one-stop service will help reduce the number of relevant procedures and time needed.
The cooperative endeavor between the two companies to develop complete payment channels will not only provide greater convenience to customers in Lao PDR, but also assist in modernizing transactions in this market.
Having its headquarters and first branch in Vientiane, Aeon Leasing Service (Lao) is now expanding its services in other major cities of Lao PDR. Amid slowing economic conditions, loans extended during the first half of 2015 accounted for 30 percent of this year's target of LAK50 billion or 200 million Baht. The company plans to launch more marketing activities to boost its business during the second half of the year, wherein the overall economy is expected to benefit from the AEC advent.
Mr. Suwat added that KBank has operated its locally incorporated institution in Lao PDR since December 2014, offering loans and financial transaction services to both individual and corporate customers there, including Thai businesses that have invested in the country. Providing credit, KBank assesses their business potential in Lao PDR, plus their company outlook in Thailand. Such risk assessment is conducted to evaluate the entire group prospect. Therefore, the Bank can better underwrite credit and give other supporting services to the businesses.
Amid Lao PDR's high economic growth potential, some Thai operators may wish to cash in on growing business opportunities. Thus, KBank stands ready to support Thai businesses in advisory services, business matching activities, and diverse financial services.