Both parties are also ready to jointly develop payment channels and other innovative services in a bid to assist Thai investors in Laos.
Suwat Techawatanawana, KBank’s first senior vice president, said Aeon Leasing Service (Lao) had been granted kip-denominated loans by the bank’s Laotian unit to be used for its retail and motorcycle-loan businesses.
Aeon Group is a successful financial conglomerate in Thailand, offering personal-loan and credit-card services. Given the promising trends in Laos, the group’s business expansion into this marketplace is expected to bring fruitful results.
Aside from financial support, KBank will cooperate with Aeon to develop products and services such as innovative payment channels to facilitate its customers in Laos.
Shiro Kitano, managing director of Aeon Leasing Service (Lao), said this cooperative effort with KBank would be supportive to the company’s business, making it more flexible in its operations.
Aeon Group now centralises its business management of the Asean region in Thailand. After branching out into the Laotian market, the conglomerate may contact KBank. The one-stop service will help reduce the number of relevant procedures and time needed.
The cooperative endeavour between the two companies to develop complete payment channels will not only provide greater convenience to customers in Laos, but also assist in modernising transactions in this market.
Having its headquarters and first branch in Vientiane, Aeon Leasing Service (Lao) is now expanding its services in other major cities in that country.
Amid slowing economic conditions, loans extended during the first half of 2015 accounted for 30 per cent of this year’s target of 50 billion Lao kip (Bt208 million).
The company plans to launch more marketing activities to boost its business during the second half of the year, wherein the overall economy is expected to benefit from the advent of the Asean Economic Community.
Suwat said KBank had operated its locally incorporated institution in Laos since last December, offering loans and financial-transaction services to both individual and corporate customers there, including Thai businesses that have invested in the country.
Providing credit, KBank assesses their business potential in Laos, plus their company outlook in Thailand. Such risk assessment is conducted to evaluate the entire group prospect. Therefore, the bank can better underwrite credit and give other supporting services to the businesses.
Amid Laos’ high economic-growth potential, some Thai operators may wish to cash in on growing business opportunities. KBank says it stands ready to support Thai businesses in advisory services, business matching activities and diverse financial services.
