Bangkok Bank (BBL) is exploring virtual banking opportunities as it transitions to digital banking services in response to changing customer behaviour.
BBL president Chartsiri Sophonpanich said the bank is examining the Bank of Thailand's new virtual bank licence. The bank is also shifting its operations to digital banking, in alignment with the digital era, he said.
The central bank is scheduled to begin accepting applications for virtual bank licences in September this year.
Three business consortiums -- SCB X, the financial technology conglomerate and holding company of Siam Commercial Bank, Charoen Pokphand (CP) Group and Gulf Energy Development (Gulf) -- have expressed their intention to apply.
VGI, an advertising and financial service arm of BTS Group, recently indicated interest in virtual banking through a partnership with a major local financial institution.
Given the strong relationship between BBL and BTS Group, the former is expected to be a potential partner for this new venture.
Mr Chartsiri refrained from commenting on market expectations, noting the bank is adopting digital services as customer expectations change.
Both retail and business customers are increasingly adopting digital finance solutions, prompting BBL to adjust its operations, he said.
VGI recently revealed to local media plans to apply for a virtual bank licence with partners, as it is currently holding discussions.
VGI does not intend to be a major shareholder in the virtual bank, aiming to hold no more than 25% in the new entity under the central bank's minimum registered capital requirement for a virtual bank of 5 billion baht, said the company.
SCB X is collaborating with South Korea's KakaoBank and China's WeBank to apply for a new licence.
The Gulf consortium is partnering with Krungthai Bank, Advanced Info Service (AIS) and PTT Oil and Retail Business Plc (OR), while CP Group is expected to leverage TrueMoney, an e-payment and financial service provider in Southeast Asia, along with Ant Group and retail channels such as 7-Eleven, to operate its virtual banking business.