Thailand’s Ministry of Finance, with the advice of the Bank of Thailand (BOT), has announced the approval of three applicants to establish virtual banks in Thailand, following the conclusion of a rigorous review process carried out under the Notification of the Ministry of Finance dated 20 February 2024.

This notification outlined the rules, procedures, and conditions for the application and issuance of virtual bank licenses.

From 20 March to 19 September 2024, the BOT accepted applications from interested parties. A total of five applications were submitted during this period.

The Ministry of Finance and the BOT have now completed their review of the applications, supporting documents, and relevant information, in accordance with the criteria set out in the notification.

With reference to Section 9 of the Financial Institution Business Act, B.E. 2551 (2008), in conjunction with Article 9 of the Notification, the Minister of Finance has authorised the BOT to announce the list of approved applicants.

The three applicants that have received approval to proceed with the establishment of virtual banks are ACM Holding Company Limited; a consortium comprising Krung Thai Bank Public Company Limited, Advanced Info Service Public Company Limited, and PTT Oil and Retail Business Public Company Limited; and another consortium comprising SCB X Public Company Limited, WeTechnology Limited, and KakaoBank Corp.

The assessment process took into account the qualifications of the applicants, the soundness of their business plans, and their capacity to deliver financial services that offer new value or enhance the efficiency of current services through digital channels.

Key considerations included the potential of the proposed virtual banks to serve a broad and diverse customer base, with particular attention given to the unserved and underserved segments, including retail customers and SMEs.

The review also aimed to ensure that these institutions would be well-positioned to improve the customer experience, foster financial innovation, and encourage healthy competition in the banking sector in terms of both quality and pricing.

Further consideration was given to maintaining an appropriate number of new entrants in the banking sector in order to stimulate competition without undermining the stability of the financial system.

Following this approval, the selected applicants must establish a public limited company and comply with the conditions imposed by the Minister of Finance.

They must also successfully complete a readiness assessment by the BOT before submitting a formal request for a virtual bank license.

All approved virtual banks are required to commence operations within one year from the date of approval, which is 19 June 2025.

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