Virtual bank brawl: Thailand’s money movers make their pitch

Competition for virtual bank licences in Thailand is reaching fever pitch, with five heavyweight business groups stepping forward just before the application deadline. The Bank of Thailand and the Ministry of Finance are set to issue an undisclosed number of licences, with the winners announced in the first half of next year. Successful applicants will have a year to kick-start operations.

After weeks of speculation, the field is now clear. Three key consortia have emerged: a partnership between Lighthub Asset and WeLab, a group led by Singapore-based Sea Limited, and Ascend Money, backed by the powerful Charoen Pokphand (CP) Group.

Two other consortia have also confirmed their applications. One includes Krungthai Bank (KTB), Gulf Energy Development, and the PTT group. The other features SCB X, South Korea’s largest digital bank KakaoBank, and WeBank, a global leader in digital banking technology.

Lighthub Asset, a Thai fintech firm, and WeLab, a pan-Asian fintech platform, are eager to transform banking in Thailand with cutting-edge AI solutions. Co-founded by Chatchaval Jiaravanon of the influential Chearavanont family and Lightnet Group, Lighthub boasts over 30 years of financial sector experience and is the principal owner of Fortune Magazine.

Lightnet Group, which operates under the auspices of the Thai central bank and four other central banks across Asia and Europe, processes a staggering US$10 billion annually. They offer global payment solutions, including cross-border money transfers and multi-currency virtual bank accounts in 150 countries. Their notable backers include UOB Venture Management, Seven Bank, and Hanwha Investment & Securities.

WeLab, with over 65 million users in Asia, has disbursed more than US$15 billion in digital loans. Their portfolio spans consumer financing, digital banking services, and advanced wealth management solutions.

Financial growth

Having already established successful virtual banks in Hong Kong and Indonesia, WeLab has been hailed as Hong Kong’s most innovative company and clinched the Virtual Bank of the Year award.

The WeLab consortium aims to provide immediate access to intuitive financial products for underserved communities, beginning with credit and advanced AI planning tools. Their long-term vision is to foster sustainable financial growth for individuals and micro, small, and medium enterprises (MSMEs), Bangkok Post reported.

Chatu Mongol Sonakul, adviser to the consortium and former governor of the Bank of Thailand, praised the central bank’s move to invite new players into the market to spark innovation and competition.

“We are excited about the chance to establish our third virtual bank in Asia and aim to make this Thailand’s premier virtual bank,” said Simon Loong, founder and group CEO of WeLab.

Meanwhile, the Sea Limited consortium comprises Bangkok Bank, BTS Group (via VGI’s subsidiary), Saha Group, and Thailand Post. This powerhouse partnership plans to harness each member’s strengths to deliver innovative digital financial services, with a particular focus on improving access for underserved segments.

As the parent company of Shopee and the digital financial services platform SeaMoney, Sea Limited brings a wealth of experience in successfully building and operating digital banks throughout Southeast Asia.