Thailand-based Siam Commercial Bank has announced that it has entered into a partnership with Sea Group, an e-commerce and game developer based in Singapore. Through this partnership, Siam Commercial Banks will provide lending services to small businesses on Sea’s digital platform and at the same time increase its revenue from digital lending.
Sea’s AirPay will also be integrated with Siam Commercial Bank’s app, which will allow Sea’s customers to pay their bills directly through the app.
The partnership is a part of the bank’s broader plan to expand and provide digital payment and lending services to a greater number of customers.
As a part of the same strategy, Siam Commercial Bank also invested in Indonesian ride-hailing startup GoJek’s business in Thailand. Through this investment, the country’s largest lender plans to provide financial services to drivers on the app.
Earlier this year, the bank announced that it will use Ripple, a real-time gross settlement system, currency exchange, and remittance network to make cross-border payments. The bank’s customers are now able to easily send money outside the country.
Siam Commercial Bank has already established itself as the country’s second-largest digital banking service provider. The bank aims to double its digital lending from 20 million baht this year to 40 million baht in 2020.
The bank’s non-interest income dropped by 9.7 percent in the first six months of 2019 from a year earlier due to lower fee income. Currently, the bank’s retail loans outstanding amounts to 991 billion baht, of which around 117 billion baht is unsecured loans.
Sea Group, which owns e-commerce platform Shopee has raised $1.5 billion to expand its business. According to reports, the company’s revenue tripled in the second quarter of 2019, when compared to the same period last year.