Thailand is close to introducing its first virtual bank, with the Bank of Thailand (BOT) now accept Virtual bank license applications. With the deadline approaching on September 19, 2024, speculation is rife about who may apply for Thai virtual bank licenses.
Three licenses will be awarded in the initial phase, with successful candidates expected to be announced in the first half of 2025.
Once approved, these licensees will have to undertake extensive preparations, including building IT systems and implementing risk management tools, to launch virtual banking operations within a year.
About BOT the purpose These new digital players will leverage technology and data to enhance financial services, improve financial inclusion and foster healthy competition.
So far, five consortia and companies representing Thai and regional business groups have signed up: Expressed I am interested in obtaining a license.
This article provides an overview of the five companies reported as applicants for virtual banking licenses in Thailand, highlighting each company’s business activities, expertise, strengths and aspirations for their proposed virtual banking business.
List of Thai Virtual Banking Applicants to Date
SCBX, KakaoBank, WeBank Consortium
Thai financial group SCBX Formed consortium South Korea’s Kakao Bank and WeBank to apply for virtual banking license in Thailand.
The consortium aims to leverage advanced technologies and their respective expertise to extend financial services to the unbanked and create new value propositions that focus on transparency, accessibility and affordability and foster innovation that better meets the needs of each customer segment.
SCBX is one of the largest financial groups in Thailand. Own A subsidiary of Siam Commercial Bank (SCB), Thailand’s leading financial institution, it was established to drive SCB’s transformation into a diversified financial technology group with a focus on innovation in digital banking, fintech and other financial services.
In addition to SCB, SCBX also oversees the following subsidiaries and ventures: SCB10XA venture capital (VC) firm that invests in disruptive technologies and start-ups. MonixA fintech company specializing in digital lending and personal financial solutions. Card XA subsidiary specializing in credit cards and payment solutions.
Kakao Bank is a South Korean financial institution specializing in mobile banking services. The bank has partnered with Kakao, a major technology company known for the popular messaging app KakaoTalk. Serve Over 23 million customers.
KakaoBank is South Korea’s only digital bank with global ambitions, and not only is it looking to grow in Thailand, it also has a large stake in Indonesia’s digital bank, Superbank. It has begun It is scheduled to start operation in June 2024.
WeBank is China’s first digital-only bank, founded by Tencent and other partners in 2014. The company operates primarily through mobile and online platforms and offers a wide range of financial services, including loans, deposits and asset management.
The company leverages technologies such as artificial intelligence (AI) and big data to serve underserved individuals and small businesses. Claims Over 350 million individual customers and 3.4 million micro, small and medium enterprise (MSME) customers.
Consortium of Charoen Pokphand Group and Ant Group
Charoen Pokphand Group (CP) plans to set up a virtual bank under its fintech arm TrueMoney, a leading electronic payment and financial services provider in Southeast Asia. CP Group aims to leverage its extensive retail network, including 7-Eleven, to help run the virtual bank, and will work with Ant Group, an affiliate of China’s Alibaba Group. Ant Group is also a shareholder in CP’s Ascend Group, which owns TrueMoney.
Supachai Chearavanont, Chief Executive Officer of CP Group and Chairman of the Board of True Corporation, said: said The group said in March that it was preparing the necessary documents and reviewing its readiness ahead of applying for a virtual banking license.
He said the development of the virtual bank will be a collaborative effort led by TrueMoney and supported by Ant Group, with CP Group’s retail channels acting as the service touchpoint.
Supachai said the consortium is keen to provide financial services to the unbanked as well as set up a virtual bank to strengthen its business portfolio. He did not say when the group would submit a license application.
The CP Group is one of Thailand’s largest and most diversified conglomerates. Involved It provides finance and banking services through its subsidiaries, Ascend Money and TrueMoney.
Ascend Money provides financial services across Southeast Asia through a mobile app and a network of 88,000 registered agents. TrueMoney offers similar services to Ascend Money, including a mobile wallet and digital payment solutions, but with a particular focus on a user-friendly experience and expanding financial inclusion.
Ant Group is a leading Chinese fintech company known for its flagship product Alipay, a widely used digital payments platform. The company also owns China’s MYBank, Ant Bank in Hong Kongand Anext Bank, Singapore.
Gulf Energy, Krungthai Bank, Advanced Info Services, PTT Oil Retailing Company Consortium
Gulf Energy Announced In March, it launched a virtual bank in partnership with Krungthai Bank (KTB), Advanced Information Services (AIS) and PTT Oil and Retail Business (PTTOR).
The consortium, which includes major companies from the energy, telecommunications and banking sectors, will set up a joint venture and apply for a license on September 12, KTB president Payon Slivanic said. Confirmed He contributed to the Bangkok Post in August.
The consortium aims to leverage Gulf Energy’s technical expertise, AIS and PTT’s extensive customer base, and KTB’s financial knowledge to successfully launch a virtual banking operation. KTB has a customer base of 40 million, the same as AIS, meaning the coalition should be able to reach most customer groups in the country, given the country’s population of 71 million, Payon said.
Payon stressed the importance of virtual banking and technology in reducing costs associated with physical branches and making financial services more accessible to underserved groups.
“Over the years, KTB has grown to have capabilities on par with large commercial banks. As a leader in the use of digital technology, data is key to staying competitive in the next generation of artificial intelligence-generated era,” said Payon. “KTB’s strategic focus areas include leveraging data, building platforms and inclusive growth. We need a strategic partner to grow together.”
Gulf Energy is Thailand’s leading energy conglomerate, while PTTOR, a subsidiary of Thailand’s largest oil and gas company PTT Public Company, operates in petroleum and retail businesses.
Australia teeth One of Thailand’s top mobile communication service providers, KTB is a state-owned bank with an extensive network of branches and ATMs across the country.
VGI Global Media
VGI Global Media, the advertising and financial services arm of BTS Group, recently expressed interest in virtual banking through partnerships with major local financial institutions, with Bangkok Bank (BBL), Thailand’s largest lender by assets, and retailer Jaymart seen as potential partners.
BBL President Çartsiri Soponpanić recently declined to comment on market expectations, noting that banks are adopting digital services as customer expectations change. He said the bank is exploring virtual banking opportunities as part of its shift to digital services.
In August, the BTS group Approved VGI Global Media will raise capital through a private placement involving four investment funds. The move is aimed at helping VGI Global Media expand into various sectors, including virtual banking.
The company plans to invest the funds directly or through its subsidiaries in virtual banking projects and hopes to partner with other organisations in the venture, with each taking up to 25 per cent stake.
VGI Global Media believes that its experience with Rabbit Card and Rabbit Cash, its expertise in integrating financial, data and technology capabilities, as well as its increased capital will strengthen its position to obtain a virtual banking license.
VGI Global Media is primarily involved in media and advertising, but also operates in the financial services industry through Rabbit Card, a reloadable contactless stored-value smart card used to transfer electronic payments in the Thai system, and Rabbit Cash, a digital lending services platform.
C-Money Thailand
Singapore-based digital financial services provider C-Money Thailand is seeking a virtual banking license, fintech industry sources have reported. said An article from the Bangkok Post in August.
SeaMoney Thailand offers services such as digital payments and lending through ShopeePay and SPayLater. Parent company Sea also operates digital bank MariBank in Singapore.
Sea is a Singapore-headquartered technology conglomerate with operations across several key sectors, including digital entertainment and gaming, e-commerce and digital financial services through its digital payments and financial services brand, SeaMoney, in Southeast Asia.
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