The country’s first virtual banks are expected to begin offering services in 2025 amid a push to boost competition, widen loan access and cut costs for businesses and individuals.
The Bank of Thailand plans to issue three such licences in 2024 before the operations begin a year later, said assistant governor Tharith Panpiemras. About 10 parties have expressed an interest to apply for the permits, he said. Applications will open later this quarter.
Thailand is the latest country to adopt the concept of virtual lenders as technology companies including Ant Group and Grab Holdings expand financial services to tap rising demand in the region.
While Thailand lacks independent virtual banks, Bangkok Bank, Kasikornbank and other local peers have boosted their investments, offering various digital services including online accounts and payments.
“Higher competition will strengthen the overall banking system by prompting existing players to improve their services and innovations,” Mr Tharith said at a briefing on Thursday.
“New virtual banks will also expand their services into new underserved customers with lower costs that would benefit the overall customers.”
Virtual banks may provide full-service banking businesses and will be subject to the same regulations and supervisions as traditional commercial banks. However, they won’t be allowed to open physical branches or operate their own ATMs, according to Mr Tharith.
Applicants must have a minimum registered capital of 5 billion baht that must be scaled up to 10 billion when fully functional.
The Bank of International Settlements has said the proliferation of virtual banks will improve financial inclusion, but has warned regulators to ensure that consumer data is protected.
