Jaymart is expanding into virtual banking, by partnering with South Korea's KB Financial to beef up its infrastructure. The announcement comes merely days after the Bank of Thailand released its guidance on virtual banking licenses which will be granted by 2025 to three companies.
Currently Jaymart and KB Financial are already partners in "KB J Capital", working together in areas of consumer loan services, from revolving loan, term Loans, mobile loans and car for cash. Then, serving the underserved through virtual banking services seems like a natural next step for the holding company.
It will simply be a battle of the big corporate giants, judging by the criteria issued by the BoT. Neverthless, the new guidelines will foster more competition and varied financial products (as well as hopefully, access) to the market, with telecom, commerce and more able to give traditional banks a run for their money.
For Jaymart, adding virtual banking to its ecosystem of products makes a lot of sense, especially doing it with KB Financial who can provide core banking know how.
Jaymart's strong business unit includes SINGER, which currently runs hire-purchase services and car title loans and JMT, Which handles debt collection and debt management in Thailand.
All this currently serves "the underserved" in Thailand and uniquely, those who will benefit from virtual banking services.
In this sense, Jaymart should be well positioned to capture new users without longstanding credit history.
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