SCB X, the holding company of Siam Commercial Bank (SCB) Group, has set a five-year business direction ending in 2026 to pave the way for it to become a regional financial technology company and generate income from new sources.
Chief executive Arthid Nanthawithaya said SCB X completed its organisational restructuring and now classifies businesses under the holding company into three generations.
The first generation is core banking services operated by SCB, while the second covers consumer finance and digital financial services, which are updated from those offered by SCB.
The third generation covers new innovative digital platforms and tech services.
For the first phase of the plan spanning 2022-23, SCB X is focused on digital infrastructure development.
The second phase covers 2024-25 and emphasises business expansion, he said.
The third phase is expected to occur by 2026, when SCB X projects the second and third generations of businesses to earn a profit and launch initial public offerings to list on local and foreign stock markets, depending on their business objectives, said Mr Arthid.
In terms of monetisation, the third generation covering digital and tech services will be a key segment contributing new sources of income for SCB X, he said.
The second generation of financial services should also improve profitability, while the core banking business in the first generation can continue to deliver stable core profit, said Mr Arthid.
He said the third generation of businesses have high potential to upgrade to become super apps, especially the Robinhood app, which started as a food delivery service and expanded to cover several services, including shopping, delivery and hotel bookings.
Robinhood plans to offer a ride-hailing service by the end of this year.
For the next phase, Robinhood wants to offer an electric vehicle (EV) rental service for Robinhood drivers.
Under this business model, drivers can avoid debt by renting instead of buying EVs, while still earning income from delivery jobs.
Mr Arthid said SCB X is also interested in digital assets and believes it can develop new business opportunities, especially related to blockchain technology.
However, he said it requires more time to prove digital assets are acceptable to the general market.
Given the fluctuation of digital asset prices, investor confidence has been dampened, said Mr Arthid.
