Siam Commercial Bank (SCB) is joining forces with Thai conglomerate Charoen Pokphand (CP) Group to create a venture capital fund that will invest up to $800 million in areas such as blockchain, digital assets and fintech. The partners will take 50:50 ownership of the global Disruptive Technology Venture Capital Fund, with each contributing $100 million of capital. Another $400 million to $600 million will be sought from external limited partners.
The move builds on SCB’s decision last year to set up a digital technology investment arm called SCB 10X, which will manage the fund alongside CP Group.
Arthid Nanthawithaya, CEO, Siam Commercial Bank, says: “Financial services in the future will be very different from today. Blockchain-enabled financial services have the potential to broaden financial inclusion, facilitate open access, and encourage innovation. CP Group and SCB Group bring together unique value-add propositions to both startups and investors.”
Separately, the bank has set up SCBX as a “mothership company” designed to enable it to become a “regional financial technology conglomerate” by 2025, with the goal of building a 200 million strong customer base.
SCB will “no longer be a bank in the original sense of the word, instead of transforming into a financial technology group with a stronger banking business as part of the group,” says a statement.
According to Nanthawithaya: “SCB must no longer limit itself to the traditional banking business, but rather take advantage of its financial strength to accelerate its aggressive expansion into other types of financial businesses that the market demands, build technological capabilities, and manage a large technology platform to keep pace with global players.”
