Five applicants have submitted bids for a virtual bank license, according to Somchai Lertlarpwasin, Assistant Governor of the Financial Institutions Policy Group at the Bank of Thailand (BOT).
The submission window, which closed on 19 September 2024, followed a call from the Ministry of Finance and the BOT for interested parties to apply.
While the BOT has not yet confirmed the names of the applicants, reports suggest that a consortium led by Gulf Energy Development, which includes Krungthai Bank, Advanced Info Service, and PTT Oil and Retail Business, is among the contenders.
Another prominent contender is the SCB X consortium, which has partnered with KakaoBank, South Korea’s largest digital bank, and WeBank, China’s first digital-only bank.
Singapore-based Sea Group, the parent company of Shopee, is also believed to have submitted an application.
Additionally, Ascend Money, a financial technology firm backed by the Charoen Pokphand (CP) Group and supported by Ant Group, is also expected to be in the running.
A consortium formed by Lightnet and WeLab is reportedly competing, as is Thailand Post, following the approval from its board.
The BOT will now assess the applicants based on their qualifications, potential, and capacity to operate a virtual bank, in accordance with the Ministry of Finance’s guidelines issued on 4 March 2024.
The evaluation will also consider the benefits to the Thai economy and the stability of the financial system.
The list of qualified applicants will be submitted to the Minister of Finance for approval, with an official announcement expected by mid-2025.
Once approved, successful applicants will have one year to prepare for the launch of their virtual banking operations.
The Bank of Thailand plans to issue three virtual bank licenses initially, despite the Ministry of Finance suggesting there may not be a cap on the number.
To qualify, applicants must have a minimum registered capital of 5 billion baht, which will later increase to 10 billion baht.
Featured image: Somchai Lertlarpwasin, Assistant Governor of the Financial Institutions Policy Group at BOT.
