SCB and AIS shares jump to online lending joint venture
Shares of Thailand’s third-largest lender, Siam Commercial Bank Plc (SCB), surged in morning trading on Wednesday, after announcing a joint venture with the country’s leading mobile network, Advanced Info Service Plc (AIS ).
SCB and AIS announced on Tuesday evening the creation of AISCB, to provide loans online through online platforms.
The announcement sent SCB shares up nearly 5% when the markets opened. AIS stocks rose almost 3% against a gain in the benchmark of 0.1%.
By the start of the afternoon session, both stocks had reduced their gains. SCB shares rose 2.50 baht or 2.33% to 110 baht and ADVANC by 4 baht or 2.07% to 197 – the two most actively traded stocks – while the SET index was up 2.62 points or 0.16% at 1,617.48.
“The joint venture will create financial products that meet broad demand with digital technology as a key driver,” the two companies said in a statement.
Analysts were positive about the partnership.
“This is the only digital loan proposition that has a chance of long-term success,” said Maria Lapiz, head of institutional research at Maybank Kim Eng, citing the company’s user base and infrastructure. telephone.
AIS, which has 43 million mobile subscribers in Thailand, will hold equal shares in the company.
The bank could use the behavioral information of AIS customers to support the underwriting process, said Yuvanart Suwanumphai, analyst at Finansia Syrus.
SCB chief executive Arthid Nanthawithaya was due to hold a press conference later on Wednesday.
Rival lender Kasikornbank Plc launched a digital lending push with Japanese mobile chat app operator Line Corp and launched services last year.