SCB X adjusts spotlight to foreign fintech firms

SCB X, a leading Thai financial technology group and the holding company of Siam Commercial Bank, is focused on investing in fintech firms across Southeast Asia and beyond, prioritising higher returns on investment over traditional banking ventures.
According to chief executive Arthid Nanthawithaya, SCB X continues to expand its portfolio by investing in fintech companies and tech startups abroad through various business models, including partnerships, joint ventures and mergers and acquisitions.
The firm is especially interested in fintech firms that can access underbanked segments, including individuals and small businesses.
The company allocates its investments across three main groups, with a primary focus on Vietnam and Indonesia as its key markets.
The Philippines is a secondary market because it stands to benefit from US support amid geopolitical factors.
The third market includes technology leaders beyond Southeast Asia, specifically in South Korea, the US and Israel.
An asset-light strategy is central to the company’s investment approach, enabling better control over operating costs and improving returns on investment, including both returns on equity and returns on assets, compared to traditional banking.
On average, the operational costs for traditional banking are around 40% of total income, whereas fintech firms typically incur costs of around 20%.
Asset light refers to a business model strategy that minimises ownership and investment in fixed assets such as property, equipment and inventory.
This approach allows companies to operate with lower capital expenditure while relying on external providers or flexible arrangements for necessary resources.
“We focus on high-potential fintech and startup firms that leverage technology to reach underbanked customers across the region, where traditional banks mainly serve middle to upper income segments,” said Mr Arthid.
“Now Asean traditional banks mainly serve customers in the middle to upper income segments.”
He said the financial penetration of Southeast Asia’s traditional banks lags far behind that of developed markets in the US and Europe, creating significant opportunities to increase financial inclusion across banking, insurance and investment services, particularly through digital platforms.
SCB X partnered with KakaoBank, South Korea’s largest fully digital bank, and WeBank, a prominent digital bank in China, to submit an application for a virtual banking licence from the Bank of Thailand.
SCB X plans to leverage KakaoBank’s user experience design and WeBank’s tech infrastructure to support its virtual bank operations.
Mr Arthid said technology will reduce operating costs and enhance competitiveness. With WeBank’s robust technology infrastructure, SCB X’s neobank aims to serve a large customer base of around 400 million.
Meanwhile, SCB X subsidiaries such as ABACUS Digital and Monix have already been utilising technology to grow digital lending.
Monix has contributed to the firm’s positive income despite its small loan portfolio of around 10 billion baht, while ABACUS is preparing to raise new funds for expansion.
CardX and AutoX are using AI to strengthen market operations, he said.