Bangkok--7 Jun--KASIKORNBANK
KASIKORNBANK (KBank) launches Beacon Venture Capital, a new organization with function of investment in startups based on a concept of being "The Next Building Block". A capital fund of 1 billion Baht has been set up in support of financial innovations that align with KBank strategies. With a venture capital (VC) investment in a Thai startup "FlowAccount", KBank is now the first Thai bank to conduct such investment. The company's goals for 2017 consist of direct investments in 3-5 startups and investments in 2-3 VC funds.
KBank President Ms. Kattiya Indaravijaya said, amid the constant rise in consumer demand for digital banking services and technological advancements that will lead to new pattern of banking services,KBank's key strategy is to apply digital technology in business operations. In addition, cooperation has been forged with various partners to create long-term competitiveness toward sustainable business growth.
KBank's most recent effort is the establishment of Beacon Venture Capital Co., Ltd., or Beacon VC, of which KBank holds 100 percent of shares. Beacon VC's function is to invest in VC funds and startups with potential to introduce financial innovations or novel technologies that can perfectly align with and support KBank's strategic plans.
The initial capital of Beacon VC is 1 billion Baht; its investment policy includes direct investments in Thai and foreign startups, and investments via leading VC funds. The company is led by Mr. Thanapong Na Ranong as Managing Director. Mr. Thanapong has vast experiences in investments in startups.
Mr. Thanapong Na Ranong, Beacon VC Managing Director, said that the company planned to invest directly in around 3-5 FinTech startups and a few venture capital funds (VC) in 2017. Beacon VC is Thailand's first bank-owned corporate venture capital that invests in Thai startups in the form of VC. Among those startups is FlowAccount to which the company, as the lead investor, and three other firms will provide financing. FlowAccount is currently one of KBank's business partners which has expertise in SME accounting management. Our cooperative effort involves the use of FlowAccount system to link toKBank customers' deposit accounts and K PLUS SME. The launch of Beacon VC thus represents perfect collaboration among KBank, our customers and startup firms. Moreover, Beacon VC invests in Singapore-based Dymon Asia – one of the leading VC funds in Asia which focuses on FinTech investment. Two deals worth more than 200 million Baht are also in the pipeline.
Beacon VC's main investment objective is to make KBank achieve sustainable profitability over the long-term. Its investment strategy aims to create value proposition for KBank products and services, reduce timeline and cost involved for innovation development, maximize the first mover advantage so as to better access innovation, which will elevate KBank status to be at the forefront in innovation development, as well as to develop technology expertise for KBank staff, thus bolstering KBank's technological capabilities.
Mr. Thanapong added that the symbol of Beacon VC is a lighthouse that emits light directing our partner FinTech firms and startups - once they have utilized KBTG's digital technologies and KBank's database of more than 14.2 million customers under our digital partnership cooperation - to develop cutting-edge products and services that meet the needs of customers in a rapid speed.
"The Next Building Block" concept used to incorporate ecosystems of the three units of KBank, i.e., digital partnership, KBTG and Beacon VC, will help promote startups to grow in a stable manner, thus bringing long-term sustainability to KBank, added Ms. Kattiya.
Beacon VC has been set up as part of KBank's business strategies to create strategic digital capability. Recently, KBank established KBTG to focus on innovation creation in cooperation with our technology partners, as well as joining forces with FinTech firms and startups to create financial innovations so as to accommodate digital banking that has grown exponentially over the years. Most recently, the Bank of Thailand gave an approval to KBTG to test a new form of financial service in Regulatory Sandbox for the first time in Thailand. Based on a blockchain technology, this service is used to consider issuing a letter of guarantee.