Somchai Lertrapuwasin, deputy governor of the Bank of Thailand’s (BOT) financial institutions policy group, said five applicants had submitted bids for virtual bank licenses.
The submission period, which closed on September 19, 2024, comes after the Ministry of Finance and the BOT invited applications from interested parties.
The BOT has not yet confirmed the name of the applicant, Reports It has suggested that a consortium led by Gulf Energy Development, which also includes Krungthai Bank, Advanced Info Services and PTT Oil and Retail Business, is a likely candidate.
Another strong contender is the SCB X consortium, which has partners with South Korea’s largest digital bank, KakaoBank, and China’s first digital-only bank, WeBank.
Shopee’s parent company, Singapore’s Sea Group, is also believed to have submitted an application.
Additionally, Charoen Pokphand (CP) Group-backed and Ant Group-backed financial technology company Ascend Money is also expected to be a contender.
a A consortium formed by Lightnet and WeLab It is said that they are in competition, Thailand PostWith approval from the Board of Directors.
The BOT will now assess applicants based on their qualifications, potential, and ability to operate a virtual bank, in accordance with guidelines issued by the Ministry of Finance on March 4, 2024.
The evaluation will also take into account the benefits to the Thai economy and the stability of the financial system.
The list of eligible applicants will be submitted to the Minister of Finance for approval, with a formal announcement expected by mid-2025.
If approved, applicants will be given one year to prepare to launch their virtual banking operations.
The Bank of Thailand plans to initially issue three virtual bank licenses, despite the Ministry of Finance suggesting there may be no cap on the number.
To be eligible, applicants must have registered capital of at least 5 billion baht, which will later be increased to 10 billion baht.
Featured image: Somchai Lertrapuwasin, deputy governor of the BOT’s Financial Institutions Policy Group.
