English
Thailand: SCB aids SMEs in e-commerce
Siam Commercial Bank (SCB) has expanded trade finance credit lines for small and medium-sized enterprises (SMEs), aiming to reap opportunities from cross-border e-commerce.
The bank has increased total trade finance credit lines offered to SME clients by 1 billion baht per month since the start of the year.
The strategy to support growing SME loan demand, especially for cross-border e-commerce, is in line with positive growth of the digital business segment seen globally, said Pikun Srimahunt, senior executive vice-president and chief SME banking officer.
“Despite a contraction in Thai exports, mainly due to the trade spat between the US and China, there are more opportunities for local SMEs in terms of international business expansion, especially for cross-border e-commerce,” Ms Pikun said.
The bank has supported SME business expansion through innovative technologies and the digital platform, in line with the strong growth of cross-border e-commerce globally in the digital era.
SCB, in collaboration with Amazon Global Selling, supports Thai SMEs in international expansion under the cross-border e-commerce concept, becoming the first Thai bank to do so.
Out of existing SME customers numbering 500,000, 2,000 are expected to join the cross-border e-commerce scheme with credit lines of 2 million baht per client on average.
Amazon has 300 million active customers worldwide, with more than 100 million identified as prime customers in overseas Amazon marketplaces.
Amazon has 175 fulfilment centres around the globe that can help sellers deliver products to customers in 185 countries and regions representing 85% of the world’s total GDP, said Bernard Tay, Southeast Asia director for Amazon Global Selling.
SCB’s SME strategy is to focus on the digital platform and generate 10% growth in SME loans, Ms Pikun said.
The bank predicts 100 billion baht in new SME loans by year-end, with total SME loans outstanding to reach 380 billion baht in 2019.
Despite flat first-quarter growth in SME loans, seasonal factors and the bank’s strategy will aid expansion from the second quarter on, Ms Pikun said.
SCB, the country’s second-largest lender by total assets, reported a total SME loan portfolio of 340.49 billion baht for the first three months of 2019, down 0.2% from the end of last year and 0.4% year-on-year.
SCB shares closed yesterday on the Stock Exchange of Thailand at 128.50, unchanged, in trade worth 1.17 billion baht.
Source: https://www.bangkokpost.com/business/news/1686604/scb-aids-smes-in-e-commerce