The partnership signals Lu International’s plan to capitalise on growth opportunities for financial services in some of the world’s up and coming economies, throughout and beyond Southeast Asia.
Singapore, 18 August 2020 – Lu International (Singapore) Financial Asset Exchange (PTE) Ltd. (‘Lu International’), a subsidiary of China’s leading retail fintech enterprise Lufax Holding, and Kasikornbank, one of Thailand’s largest banks, have recently announced a strategic partnership to meet rising demands for digital financial services in Thailand. The partnership allows Kasikornbank to leverage Lu International’s technology and expertise to establish a comprehensive online wealth management platform for retail investors in Thailand. This platform will be jointly operated and managed by both parties.
Lufax Holding leverages its innovative ‘cloud-exporting’ model to empower the banking customer with its technological and operational advantages. The jointly built wealth management platform will be deployed on a fintech empowering platform developed by Lufax Holding. In recent years, Lufax Holding has adopted big data, artificial intelligence, cloud computing and other emerging technologies to successfully develop a number of fintech solutions, some of which have already been rolled out – such as the investor suitability management system, ‘Know Your Intention (KYI)’ model that integrates the company’s rich experiences in financial operations, and strong research and development capabilities.
“This strategic cooperation with Kasikornbank is a strong and mutually-beneficial alliance. Lufax Holding, together with Lu International, has the technological capabilities and wealth of experience in doing business globally to help address a gap in the Thailand market.” Weighed in Greg Gibb, CEO of Lufax Holding, “Together with Kasikornbank who has a long history of local operations and has built a strong customer base in this market, we believe this partnership will accelerate the pace of digital transformation within the financial institution industry in Thailand and across the Southeast Asian region.”
Lu International was set up in Singapore in 2017 as Lufax Holding’s first international arm. Since then, it has progressively extended its operations and market reach, which now spans several markets in Asia, with over 380,000 registered customers.
Kit Wong, CEO of Lu International, commented on the move, “Being based in Singapore, a gateway to Southeast Asia, as well as being one of Singapore’s first wealth management platforms providing end-to-end online account opening services and investment operations, we are well positioned to be the fintech enabler of choice for traditional financial institutions in the region that want to provide convenient, efficient, intelligent and personalised digital financial services to investors.” In the coming months, Wong added, “We will continue to grow our capabilities in Southeast Asia, extending our footprint in the region to meet the needs of our customers and support the business growth of our partners.”
LU Global is the online wealth management mobile platform operated by Lu International that offers customers with round-the-clock access to a wide range of high-quality investments. Utilising the technology developed by Lufax Holding, LU Global has instated a robust risk management system that adopts strict Know Your Product (KYP) and Know Your Customer (KYC) compliance procedures, alongside an Anti-Money Laundering (AML) and anti-fraud system.
Kattiya Indaravijaya, CEO of Kasikornbank, said, “The world is about to enter another wave of digital disruption as big players like commercial banks morph into fintech organisations. It is imperative that we quickly adjust ourselves and strengthen our capabilities to seek new business opportunities. With the necessary technical support coupled with fintech innovation, Kasikornbank has successfully achieved digital transformation through the partnership with Lu International, as well as the help of an open banking services model. We are ready to create a digital service platform to allow Thai individuals and businesses to go beyond borders to capitalise on massive opportunities in the ‘Era of Asia’.”
Established in 1945, Kasikornbank is the fourth-largest commercial bank in Thailand. It has an extensive customer base in the country with 17.3 million customers, including 12.7 million online users. Kasikornbank has been actively promoting the digitisation process in recent years and is committed to providing a full range of financial services through digital platforms to its customers.