Virtual bank race: Five giants vie for digi-crown in Thailand

The race is heating up for the new virtual bank licences, with five heavyweight business groups ready to battle it out. Gulf consortium has already thrown its hat into the ring, according to Krungthai Bank (KTB) president Payong Srivanich. This power team includes Gulf Energy Development and PTT Group.

Armed with a solid business plan and robust ecosystem that meets central bank regulations, the consortium is feeling confident, said Payong.

“Our virtual bank aims to cater to unbanked and underbanked customers. Despite the higher credit risks, we are banking on innovative tech to manage these effectively.”

Bangkok Bank (BBL) president, Chartsiri Sophonpanich, also expressed keen interest in virtual banking and is currently analysing customer segmentation. BBL ambitions to extend its customer base, ensuring financial inclusion in today’s digital age. However, Chartsiri stayed mum on potential tie-ups with BTS Group, saying there’s still time before the central bank’s deadline.

The Bank of Thailand will close applications for virtual bank licences tomorrow. VGI, BTS Group’s advertising and financial arm, is eyeing virtual banking through a partnership with a local financial giant. With BBL’s strong ties to BTS Group, all eyes are on them as a potential partner.

CP Group is set to enter the fray via TrueMoney, leveraging its retail network (think 7-Eleven) and collaborating with Ant Group, the Alibaba-affiliate. Meanwhile, SCB X teams up with South Korea’s KakaoBank and global player WeBank for a robust virtual banking bid.

Gulf isn’t flying solo either, it’s partnering with KTB, Advanced Info Service, and PTT Oil and Retail Business. Sea Group (Thailand), linked to the Singapore-based Sea Group, is also in the license hunt, planning to tap into Shopee’s massive database to supercharge its virtual banking efforts.

Sea Group already operates MariBank, which boasts a full digital bank licence from the Monetary Authority of Singapore, reported Bangkok Post.