Thai Virtual Banking Race Heats Up
Banks SCB X and KTB prepare for virtual bank debut, awaiting final decision on official license grants
Get ready for a thrilling showdown! The Bank of Thailand (BOT) is set to unveil the list of virtual bank licensees by mid-2025, with services set to launch by mid-2026.
Two big players, SCB X and Krungthai Bank (KTB), are gearing up to enter the virtual banking scene, despite the economic turbulence. The Finance Ministry is about to release the list of companies granted virtual bank licenses soon, and both banks could play a pivotal role in this burgeoning market.
Arthid Nanthawithaya, CEO of SCB X Plc, admitted that while the bank hasn't received the official green light yet, they are primed and ready. He stressed that SCB X has established essential infrastructures, tech, and operational systems, anticipating the license. However, he also recognized the economic conditions could affect the pace of operations.
Payong Srivanich, CEO of Krungthai Bank, echoed the same sentiments, noting continuous preparations, including discussions with shareholders on operational and business strategies. Although they're still awaiting the official announcement, he expressed confidence that Krungthai Bank is ready to implement their plans as soon as the decision is made.
The virtual banking landscape is being shaped by the BOT, aiming to enhance financial services for underserved and unbanked individuals. The BOT aims to boost the quality and efficiency of services, offering financial products tailored to customer needs and risk profiles.
According to news sources, the contenders for the virtual bank licenses include:
- SCB X: Partnering with WeBank and KakaoBank
- Krungthai Bank: With AIS and the PTT Group
- Ascend Money: Team-up with Ant International
These three groups are among the five companies that applied for licenses with the BOT in the past period. The others are C Group and Lightnet Group.
As of mid-2022, the landscape for virtual bank licenses was evolving, but specific top contenders weren't clearly defined. However, by May 2023, the BOT had approved three new digital banks, among them Krungthai Bank, SCBX, and Ascend Money[3]. These licenses indicate that these entities are major players in the digital banking space in Thailand.
Stay tuned for more exciting developments in Thailand's virtual banking sector!
- The upcoming virtual banking scene in Thailand promises to be competitive, with notable players like SCB X and Krungthai Bank ready to enter the market, despite economic turbulence.
- SCB X, in partnership with WeBank and KakaoBank, is anticipating the virtual bank license, having already established necessary infrastructure, technology, and operational systems.
- Krungthai Bank, in collaboration with AIS and the PTT Group, is also preparing vigorously for the launch of their virtual banking services, demonstrating readiness even while awaiting the official announcement.
- The approval of digital banking licenses for Krungthai Bank, SCBX, and Ascend Money by the Bank of Thailand in May 2023 underscores their significant role in shaping the evolving virtual banking landscape in Thailand.
- International investors should closely monitor the developments in Thailand's virtual banking sector, as the entry of these major players could provide lucrative opportunities for investments in this burgeoning market, contributing to the economy and environment, and influencing the broader political and technology landscapes.
