Thai shares of SCB and AIS jump on online lending joint venture

FILE PHOTO: The logo of Advanced Info Service Public Company Limited is pictured in a showroom in Bangkok, Thailand, May 12, 2016. REUTERS / Athit Perawongmetha / File Photo

By Chayut Setboonsarng

BANGKOK (Reuters) – Shares of Thailand’s third-largest lender, Siam Commercial Bank Pcl (SCB), surged in morning trading on Wednesday, after announcing a joint venture with the country’s leading mobile network, Advanced Info Service Pcl (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%.

“The joint venture will create financial products that meet broad demand with digital technology as a key driver,” they said in a statement.

Analysts were positive about the partnership.

“This is the only digital loan proposal 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 information from AIS’s customer behavior 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 Kasikokrnbank Pcl has launched a digital lending campaign https://www.reuters.com/article/kasikornbank-line-jv-idUKL3N1YH2FO with Japanese operator of mobile chat apps Line Corp and launched services l ‘last year.

(Reporting by Chayut Setboonsarng; editing by Martin Petty)

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