One of the largest banks in Thailand, Kasikornbank, known as KBank, has started to utilise DeFi (decentralised finance) within its growth plans.

According to a report by the Bangkok Post, Kbank’s technology subsidiary Kasikorn Business Technology Group (KBTG) is heading up the DeFi research.

The report states: “DeFi is a blockchain-based form of finance that does not rely on brokerages, exchanges or banks to offer traditional financial instruments. Instead, it utilises smart contracts on blockchains.”

Chairman of KBTG, Ruangroj Poonpol said of the plans: “DeFi is a key exploration for KBank Group this year […] The project is being explored through KBTG under the second phase of the company's digital transformation programme.”

Poonpol went on to say that DeFi could be crucial in improving financial inclusion for people in the country through the ability to access innovative financial services: “With this asset-backed form, DeFi could also create economic value for Thailand.”

In addition, KBank is seeking to expand in Southeast Asia, particularly Vietnam, where around two thirds of the population are unbanked.

KBank, the second largest lender in Thailand by assets, makes up 40% of the nation’s digital banking transactions, Cointelegraph reports, and is the “largest mobile banking platform in Thailand with over 16 million users on its app”.

As well as the planned DeFi research, KBank is also involved in cryptocurrency and blockchain adoption, and operates a digital trading platform together with the Stock Exchange of Thailand.