Thailand’s Ministry of Finance has granted preliminary approval to three applicants to establish virtual banks, marking a milestone in the country’s financial sector liberalization and digital transformation efforts.
The Bank of Thailand (BOT), which advised on the decision, said in a statement Thursday that the approved entities include ACM Holding Co. Ltd.; a consortium led by Krung Thai Bank Pcl with telecoms giant Advanced Info Service Pcl and PTT Oil and Retail Business Pcl; and a third group comprising SCB X Pcl, WeTechnology Ltd., and South Korea’s KakaoBank Corp.
The selections follow the Ministry’s February 2024 issuance of rules governing virtual bank licenses. BOT received five applications between March and September 2024.
Each proposal was evaluated based on the applicants’ financial strength, digital banking experience, and ability to serve underserved customer segments, particularly SMEs and low-income individuals.
The move aims to enhance competition, improve financial inclusion, and encourage innovation in Thailand’s banking sector, while maintaining financial stability, the central bank said.
“The number of virtual banks approved reflects a balance between fostering competition and ensuring systemic stability,” the BOT said.
Under the terms of the approval, the selected groups must establish public limited companies and meet all regulatory conditions, including a readiness assessment by the central bank.
They are required to commence operations within one year from the date of approval, or by June 19, 2026.
Virtual banking is seen as a key pillar in Thailand’s digital finance roadmap. By enabling new entrants, authorities aim to diversify financial services and lower costs for consumers in a banking landscape long dominated by incumbents.
Business News Asia
