CIMB Thai Bank Working With Fintech Providers To Expand its SME Customer Base

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CIMB Thai Bank Working With Fintech Providers To Expand its SME Customer Base

Source: acnews.net

CIMB Thai Bank is in talks with 10 local fintech providers about designing a trade-finance solution catering to SMEs that have exposure to the ASEAN market, reports The Nation. This is part of CIMB Group’s three year business strategy as it sees fintech “as a journey leading to new innovations and increased efficiency for the group and its business units.

The new product would help the bank expand its SME customer base, while its fintech venture would enable it to connect more closely to what the parent CIMB Group network has been doing in the fintech area.

“The bank has an open platform for fintech providers with business ideas that might meet its requirements, with any income derived to be shared amongst them,” said Phisit Sucharitsopit, executive vice president for CIMB Thai’s Transaction Banking Group.

Although no official description has been released about the somewhat metaphorical “product” expected to launch end of year, CIMB Thai expects the open platform for local fintech providers will help it increase income from transaction banking, which it hopes will grow 70-80% annually over the next three years.

CIMB Group has two fintech strategies:

  1. The partnership with Startupbootcamp FinTech, an accelerator programme for start-ups wishing to expand in the region to develop financial products and services for the group and its subsidiaries in the region.
  2. The adoption of innovative solutions to reinforce existing businesses, “unique” to CIMB Group, which believes it must adjust itself to ride the fintech trend.

The bank currently claims 2.5% of the Thai transactional-banking market, with targets to increase to 4% in three years time.

The Bank of Thailand has made CIMB Thailand an appointed cross-currency dealer for this settlement of Malaysian ringgit-baht trade under the recently launched Local Currency Settlement Framework. The central bank in Malaysia is expanding the framework to other countries in the region, in which should also benefit the Thai office in terms of fintech partnerships across ASEAN.

A version of this story appeared in The Nation on July 7. Read the full version here.