Thailand is launching virtual banking licenses to reshape its financial landscape, aiming to serve underserved populations. Initial licenses will be issued in 2024, with operations expected by 2025.
Thailand’s Virtual Banking Revolution
Thailand is stepping into the future of finance by launching virtual banking licenses, marking a transformative moment for its financial sector. Companies like VGI, BBL, SCB, Charoen Pokphand Group, and Gulf Energy Development are vying for these licenses. To qualify, applicants must initially have a minimum capital of 5 billion baht, increasing to 10 billion later. The Bank of Thailand plans to issue three licenses in the first phase, with an intention to expand thereafter.
Expanding Access to Financial Services
Starting March 19, 2024, the Bank of Thailand will introduce a structured framework for virtual banking, targeting tech-savvy applicants to better serve underbanked populations, including retail and small medium enterprises. Virtual banks aim to provide innovative financial solutions, fostering inclusivity for those previously excluded from traditional banking. The first licensed virtual banks are expected to launch operations in 2025, positioning Thailand as a key player in ASEAN’s digital banking landscape, similar to the advancements seen in Singapore and Malaysia.
Thailand is set to launch virtual banking services by 2025, aiming to enhance financial inclusion and digital innovation in the country. The initiative is led by the Bank of Thailand, which is working to establish a regulatory framework that will allow digital banks to operate alongside traditional financial institutions. This move comes as part of the government’s broader efforts to create a more competitive banking environment and foster technological advancements.
Virtual banks will offer a range of digital financial services, including savings accounts, loans, and payment solutions, encouraging individuals and small businesses to access banking without the need for physical branches. The Bank of Thailand envisions that these virtual banks will cater to underserved populations, reducing reliance on cash and increasing access to financial products.
The introduction of virtual banking in Thailand aligns with global trends towards digitalization in the financial sector, positioning the country as a leader in fintech innovation in Southeast Asia.
Source : Thailand plans to launch virtual banking services by 2025
