The Ministry of Finance has approved three successful applicants to establish the first virtual banks in the country, the Bank of Thailand announced on Thursday.
The new banks will start business operations within one year from the date of approval, the central bank said in a statement on Thursday. Virtual banks are banks that operate only online, with no physical branches.
According to the statement, the first winner is ACM Holding Co (TrueMoney), which is backed by the CP Group. The second is Krungthai Bank (KTB), collaborating with Advanced Info Service and PTT Oil and Retail Business Plc (OR).
The third successful applicant is the SCB X consortium, comprising the holding company of Siam Commercial Bank, KakaoBank (South Korea’s largest digital bank), and WeBank (a global digital bank known for its advanced technology).
The successful applicants were selected after a rigorous review by the finance ministry and the central bank, from a total of five submissions received between March 20 and Sept 19 last year.
The two unsuccessful applicants are the Shopee consortium, led by Sea Ltd (Shopee’s parent company), along with Bangkok Bank, VGI (an advertising and financial services arm of BTS Group), Thailand Post and Saha Group; and the Lighthub Asset consortium, in collaboration with WeLab.
The central bank said Thursday’s “landmark decision” is aimed at modernising the financial sector and improving access to digital financial services for underserved groups.
Key areas of consideration included the applicants’ qualifications, business plans, and technological capacity to offer digital-first financial services that enhance efficiency, competition and accessibility.
Particular focus was given to the ability of virtual banks to serve unbanked and underbanked segments, including small and medium-sized enterprises (SMEs), as well as retail customers, said the central bank.
It noted that the move is designed to stimulate healthy competition in the banking sector while maintaining financial system stability.
Transparency and equal treatment of all applicants were prioritised throughout the selection process. The BoT said it conducted a thorough, standardised review and put in place protocols to prevent conflicts of interest among those involved in the decision-making process.
The approved applicants must now form public limited companies and comply with specific conditions set by the Finance Ministry.
They will also be required to undergo a readiness assessment by the BoT before they can apply for a final operating licence.