Siam Commercial Bank (SCB), through its unit Digital Ventures Co, has launched US$50 million venture capital unit that will invest in financial technology (fintech) firms.

Digital Ventures’ capital division is investing in startup funds, SCB says in a statement. Digital Ventures has entered an agreement with Life.SREDA, a world class venture capital fund specializing in financial technology based in Singapore. This collaboration with Life.SREDA will strategically benefit Digital Ventures in both research and investment, improving the company’s financial services in the future.

The move is in line with SCB’s vision to help drive change in the banking industry through investment and innovation, as well as supporting the growth of Thai businesses.

The bank, through Digitial Ventures, also set up a research and development unit to study financial technology products and services, similar to a laboratory within SCB. It will innovate new solutions and apply new approaches such as Blockchain, Internet of things (IoT), Machine Learning (AI), and Biometrics technologies that will benefit clients.

In August, the division will open a free-of-charge bank simulation platform that acts as a virtual testing environment for businesses developing financial technology products. This will give entrepreneurs an insight into banking mechanisms to test whether products are ready for market launch or not.

Moreover, Digital Ventures will be the first in Thailand to launch an API providing some of SCB’s data for the utilization of businesses to develop products. This service will also be free of charge.

Digital Ventures’ other division, the Accelerator, will provide knowledge, advice and funding for startups in order to strengthen Thai and regional financial technology businesses.

Digital Ventures has begun its first startup incubation program, under the name Digital Ventures Accelerator (DVA). Startups who participate in the program will be intensely educated with basic knowledge of entrepreneurship through consultancy from knowledgeable mentors working closely with participants throughout the program. Each business participating in the program will be given a grant of 300,000 baht.