High hopes for virtual banks

Advent of new lenders will modernise the financial sector and expand access to digital services, writes Somruedi Banchongduang

- Somruedi Banchongduang

Financial literacy is crucial in enhancing consumer understanding ahead of the arrival of virtual banks, which aim to improve financial accessibility for underserved groups.

On June 19, the Bank of Thailand announced three successful applicants seeking to establish the first batch of virtual banks in the country.

They are required to begin their operations within one year from the date of the Finance Ministry's approval, roughly by mid-2026.

The three approved applicants are: ACM Holding Co (TrueMoney), which is backed by the Charoen Pokphand Group; a collaboration between Krungthai Bank (KTB), Advanced Info Service (AIS) and PTT Oil and Retail Business Plc (OR); and a consortium comprising SCB X (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 applicants were selected from five submissions received between March 20 and Sept 19 last year.

The two unsuccessful applicants were the Shopee consortium, led by Sea Ltd (Shopee’s parent company), along with Bangkok Bank, VGI (the advertising and financial services arm of BTS Group), Thailand Post and Saha Group, and the Lighthub Asset consortium, in collaboration with WeLab.

According to Roong Mallikamas, central bank deputy governor, virtual banks are expected to modernise the financial sector and expand access to digital financial services, particularly for underserved and unserved retail customers and small and medium-sized enterprises (SMEs).