Kasikornbank (KBank) plans to turn its Make by KBank mobile banking app into a purely digital bank and apply for a virtual banking licence from the Bank of Thailand (BoT).
Kattiya Indaravijaya, KBank chief executive, said KBank was interested in applying for such a licence for the Make app if the central bank makes it available.
KBank is awaiting clarity on the virtual banking licence after the central bank said it would be issued for new players, including virtual banks, to enter the local banking business.
In February, the central bank issued a public consultation on the topic of "Repositioning Thailand's Financial Sector for a Sustainable Digital Economy" to lay out its underlying principles and policy directions for a new financial landscape.
In the consultation paper, the central bank provides greater flexibility for traditional banking business operations and welcomes new innovative players, including fintech companies, digital banks, virtual banks and others.
Ronadol Numnonda, the Bank of Thailand's deputy governor for financial institutions stability, recently said the central bank had been studying virtual banking licensing and continues to receive consultations from related stakeholders. He said the Bank of Thailand planned to make an announcement on the study later.
In the new financial landscape the central bank is paying attention to a balance between digitalisation, sustainability and resiliency, in line with the financial sector's transition towards a digital economy. The central bank supports financial institutions leveraging technology and data to drive financial innovation, as well as giving Thais better access to financial products and services.
KBank, the country's second-largest lender by total assets, aims to tap all customer segments, including the underbanked and the unbanked segments.
Based on cloud computing technology, the Make app is designed to serve the new generation of Thais. Most of its users are high school and university students, as well as first jobbers.
The users have different styles of personal finance management, especially for their daily or monthly expenses, including credit card payments, shopping, car loans, condominium instalment payments, personal care items, and life insurance premiums. They also focus on savings for future purchases or investment.
Users can also conduct basic financial transactions including cardless money withdrawals, money transfers, QR payments and others on the mobile banking app. There are currently more than 100,000 users on Make, with 80% of them regularly using the app.
Ms Kattiya said KBank would further develop other existing digital banking platforms, such as K-Plus and Line BK, and study the development of new digital platforms to help all customer segments enjoy access to a broader range of digital banking services.
