SCB to Embark in Myanmar

SCB to Embark in Myanmar

The Siam Commercial Bank Public Company Limited (SCB) in June has announced the change in CFO (Chief Financial Officer) by appointing the Overseas Investment Specialist “Mr.Manop Sangiambut”. Following the announcement, SCB was questioned whether the bank turned its direction to go internationally instead..?

Thailand’s banking sector this year has been facing challenges in all aspects, being disrupted by the impact of TFRS 9, along with more strict regulations of Bank of Thailand.

Moreover, several commercial banks are struggling to survive amid limited loan growth caused by economic slowdown, coupled with Covid-19 pandemic, therefore they are forced to seek new opportunities abroad. 

In case of SCB, the bank has registered a subsidiary in Myanmar under the name Siam Commercial Myanmar Limited (SCBM) with a registered capital of 150 million baht to penetrate Myanmar financial market. With such an amount of registered capital, SCBM would be SCB’s new flagship… 

What are the advantages that SCB would take from Myanmar’s retail banking market..? Well…SCB was attracted by a potential growth as Myanmar’s total population is 54 million people, but only a small group of people that can access financial services.

Mr.Arthid Nanthawithaya once stated that SCB planned to offer banking services to local retail customers in Myanmar, including personal loans, digital banking and wealth management, as well as Thai Investors in Myanmar. SCB has set a lending target of 7 billion baht by 2024.

Besides SCB, Kasikornbank Public Company Limited (KBANK) is also interested in the Myanmar market. Earlier this year, KBANK through its subsidiary Kasikorn Vision Company Limited acquired 35% of Ayeyarwaddy Farmers Development Bank (A bank).