KB Kookmin Card will take over a small financial firm in Vietnam to officially enter the country, making it a springboard for its operations in Southeast Asia, including Indonesia, and Laos, in a bid to expand its auto financing loans.
According to IB sources, the credit card company has decided to take over Han Dico Finance (HAFIC) in Vietnam and is in the final stages of talks with the Han Dico Group to take over the micro financing company.
HAFIC is an affiliate of Han Dico Group, a government-run construction company, which a number of Korean IB firms considered taking over. But the Vietnamese firm could be burdensome for Korean firms as it deals with project financing in Vietnam as its main business.
The Korean credit card firm has been working to reduce the amount of unnecessary debts for the takeover target company.
KB Financial Group has been eyeing Southeast Asia to set up its operation in the micro financing markets in a number of countries through its affiliates like KB Capital and the credit card company.
Under the strategy, KB Capital and KB Kookmin Card set up a joint venture firm with Korao Group in Laos to kick off the lease business early this year.
In March, the company signed an agreement with the Bank Central Asia to issue credit cards in Indonesia for Koreans, according to their unique credit situations in Korea, and plans to eventually expand its operation to the auto financing in the SE Asian country. The credit card firm plans to push its auto and motor bike financing loans in Southeast Asia, which is a market segment the firm believes is likely to grow substantially in the future.
The company plans to start small credit loans in those countries, to go along with auto financing, and then focus on credit card operation, its ultimate financial facility that it wants to kick off in SE Asia when the economy of the region has grown sound enough to take care of the credit card business.
Officials of KB Financial are firm on the success of the group and its affiliates operation in the region whey they cooperate one another to create synergy in operation.
KB Financial Group unveiled “KB Global Digital Bank” service at Southeast Asia Fintech Roadshow 2016, which is sponsored by Financial Services Commission and held at Cambodia for two days from June 13 to 14.
The KB Global Digital Bank is a rechargeable wallet-based mobile banking service which combines both financial services, such as account, wire transfer, overseas remittance and P2P payment, and non-financial services like messaging.
In order to overcome the limitations of financial and communication environments in Cambodia, KB Financial has formed a consortium with its subsidiaries, four domestic startups and local ICT companies to meet Cambodian government officials and companies, securing a stepping-stone for domestic fintech startups to expand their business to the local market.
Moreover, the group signed a memorandum of understanding (MOU) with Cambodia’s Canadia Bank and AMK on the same day. KB Financial expects that it will localize its new global digital banking service, expand global services in Cambodia and increase domestic digital technology support and cooperation.
Korea’s KB Financial Group Inc. will strengthen non-banking sector and online services to keep abreast of the financial trend that veers more and more away from the traditional brick-and-mortar business. The financial group will also accelerate inroads into overseas markets.
Chairman and Chief Executive Officer Yoon Jong-kyoo who enters his second year in office next year is said to be targeting to up the ratio of revenue from non-banking to over 40 percent in the longer run from current 31 percent to 32 percent. The group received a setback in its attempt to acquire Daewoo Securities, but will instead focus on reinforcing KB Investment & Securities while eying other brokerages and insurers for acquisition opportunities.
In the meantime, the group will bolster financial technology as a part of its plan to launch Internet-only service next year so that its customers will receive the same services they get by visiting its banks on online and mobile platforms. It has joined up with a fintech company to develop biometric authentication programs. It also will expand its incubation program for fintech firms dubbed as the Starters Valley.
_국민카드 캄보디아.jpg)
