Thailand Post is positioning itself to join the virtual banking licensing race following approval from its board, according to a report by the Bangkok Post.
The state-owned logistics provider plans to leverage its nationwide network to capitalise on this emerging sector, with two potential strategies in mind: joining a consortium applying for a Bank of Thailand virtual bank license or operating as a neutral banking agent for multiple virtual banks.
The Bank of Thailand plans to issue three virtual bank licenses in the first phase, with the application deadline set for 19 September.
With its 1,600 branches and 25,000 postmen, Thailand Post aims to support virtual banks in rural and underserved areas by facilitating transactions such as cash deposits, especially for customers who are not well-served by traditional banks, including migrant workers and individuals without formal employment documentation.
This approach would diversify Thailand Post’s services and expand financial access to more segments of the population.
Discussions with various consortiums are already underway, though specific details remain undisclosed.
Dhanant Subhadrabandhu, President of Thailand Post, indicated that participating in a consortium could enhance the company’s business ecosystem by providing additional financial services and infrastructure support.
As of now, five consortiums have shown interest in applying for virtual bank licenses.
These include SeaMoney Thailand, backed by Singapore’s Sea Group, VGI in discussions with Bangkok Bank, SCB X collaborating with KakaoBank and WeBank, CP Group through TrueMoney, and Gulf Energy Development partnering with Krungthai Bank, Advanced Info Service, and PTT Oil and Retail Business.
Featured image credit: Edited from Freepik
