KBank mulls buying Home Credit Vietnam

Company eyes regional expansion

Kasikornbank (KBank) is exploring an acquisition deal with Home Credit Vietnam as part of its Asean business expansion.

KBank is in talks to buy consumer finance provider Home Credit Vietnam, which is part of the Netherlands-headquartered non-bank financial institution Home Credit Group.

Home Credit Group plans to sell its businesses across Asean, said KBank executive vice-president Pattarapong Kanhasuwan.

“The deal is in the early stages and the bank needs to spend more time studying the feasibility and pricing before making a decision on bidding,” he said.

“In addition to Home Credit, we are exploring other potential deals in Vietnam.”

Under its Asean+3 strategy, the bank eyes regional expansion via several business models for both organic and inorganic growth.

KBank, Thailand’s second-largest lender by total assets, opened a branch in Vietnam in August 2022.

The bank set a target of 20 billion baht in outstanding loans and a customer base of 1.2 million in the country in 2023.

Mr Pattarapong said for the Vietnamese market, KBank focuses its growth in three core areas: business scale, customer base and competitiveness.

Digital technology is a key strategy facilitating its business expansion. The bank’s subsidiary, Kasikorn Business Technology Group (KBTG), set up a technology hub, KBTG Vietnam Co Ltd, which provides digital banking services in the country.

Bank of Ayudhya (Krungsri) announced a 75% majority stake acquisition of Home Credit’s consumer finance business in Indonesia and the Philippines, with an initial total consideration of €474 million (17.7 billion baht).

This aligns with Krungsri’s strategy to expand its presence and strengthen its businesses in Asean.

In a related development, Finnoventure Fund I, managed by Krungsri Finnovate, the corporate venture arm of Krungsri, is investing in MFast, a leading fintech startup with a banking service platform in Vietnam.

The company raised US$6 million in Series A funding with participation from new investors Finnoventure Fund I and Headline Asia, alongside returning backers Do Ventures, JAFCO Asia and Ascend Vietnam Ventures.

The leading financial services distribution network in Vietnam, MFast’s network includes 160,000 active agents who work with customers in tier 2 and tier 3 cities throughout Vietnam.

MFast helps customers access financial services, including loans and insurance, as well as high-ticket items like home appliances from brands that don’t usually open retail branches in rural areas.