Keep an eye on the big capitalist groups in the Virtual Bank Investment Battle

Currently, the Bank of Thailand (BOT) has launched a system to consider the application for the establishment of a “branchless bank” or Virtual Bank on 20 March 2024.  More than 200 Thai and foreign businessmen were interested in listening to the criteria, or about 100 companies.

The BOT will open to receive the application forms for 6 months and will cooperate with the Ministry of Finance in considering the qualifications and business plans of the applicants for around 9 months. Those who pass the criteria will be given a year to prepare for the business establishment. Therefore, it is expected that the first Virtual Bank in Thailand will open in mid-2026 at the earliest. 

However, the movement of large capital groups to match businesses to provide Virtual Bank services has become clearer. The four major capital groups that have the clearest movement are as follows:

1. Krung Thai Bank Group in collaboration with AIS Group and Gulf Group
   Krung Thai Bank has partnered with Advanced Info Service Co., Ltd. (AIS), the largest telecommunications company in Thailand, together with Gulf Energy Development PLC (GULF), which operates electricity and PTT, Oil and Retail Public Company Limited (OR), which is now in the process of discussion to become an additional partner.
2. Siam Commercial Bank Group and Kakao Bank of South Korea
   SCBX Public Company Limited (SCBX) today announced that it has joined hands with Kakao Bank, the largest digital bank in South Korea who have direct experience in the Virtual Bank, to set up a joint venture to solve the problems of Thai people who have not accessed financial services yet. SCBX will hold a majority stake and Kakao Bank will hold at least 20%.
3. Jaymart Group and its partner KB Financial Group of South Korea
   Jaymart, the leader in technology and financial retail, has joined hands with KB Financial Group, a large financial group from South Korea.
4. Charoen Pokphand Group and Ascend Group have a large customer base and are the largest capital groups in Thailand.
   Ascend Money, Thailand’s first fintech unicorn, and company in Ascend Group, CP Group or True Money service provider. Ascend Money also has partners like Ant Financial Services Group, a subsidiary of Alibaba Group.
   In addition, there is also a group of Thai Post Co., Ltd. which is discussing with consultants to determine the suitability of applying for Virtual Bank licenses. Will there be other groups of funds jumping into the battle or not? we need to wait till the official closure later.