🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Thailand's Kasikornbank to give Shopee e-commerce merchants loans

Published 10/02/2019, 03:56 AM
Updated 10/02/2019, 04:01 AM
© Reuters.  Thailand's Kasikornbank to give Shopee e-commerce merchants loans

BANGKOK (Reuters) - Thailand's second-largest lender, Kasirkonbank Pcl (Kbank) will start giving digital loans to sellers on Sea Ltd's e-commerce business Shopee, in the bank's latest digital partnership, it said on Wednesday.

The tie-up will give online sellers access to loans of up to 600,000 baht ($19,570) and also offer advice and training, Kbank President, Patchara Samalapa, with sellers being able to obtain loans without submitting physical documents.

"We will serve online sellers who want to equip themselves and expand their business," he said.

Thai bank earnings have been under pressure from a digital transaction fee waiver last year and slowing loan growth.

Kbank's non-interest income fell 16% to 13.6 billion baht and loans grew 3.8% in the second quarter to end-June as Southeast Asia's second-largest economy grew just 2.3% over the period, the weakest annual pace in nearly five years.

A simplified process will allow sellers to focus on growing their businesses without worrying about the administrative process of obtaining loans, Shopee Chief Operating Officer Terence Peng said.

The Shopee platform in Thailand features major brands and about 750,000 individual sellers.

Thai banks have turned to Thailand's booming e-commerce sector to expand digital lending, which doubled to 334.2 billion baht in 2017, according to government data.

Last month, rival lender Siam Commercial Bank Pcl also announced a partnership to expand digital loans with Sea's Thai unit.

Last year, Kbank invested $50 million in ride-hailing firm, Grab, and in July this year it introduced to merchants and Grab drivers personal loans, hire purchase and small business financing products.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.