Thai virtual bank race heats up as bidders outnumber permits

THAILAND’S virtual banking competition is heating up as applications exceeded the number of licences the central bank’s plans to grant.

Bank of Thailand received five applications for virtual banking licences ahead of the Sep 19 deadline, according to a statement on Monday (Sep 23). BOT, which plans to grant no more than three virtual banking licences, expects to announce the winning bidders by mid-2025, it said. The BOT didn’t name the applicants.

Authorities across Asia are opening up to allow virtual banking services in a bid to broaden access. The new lenders have faced stiff competition to generate profits against more traditional brick-and-mortar banks, who are also increasing their digital offerings.

Ahead of the deadline, groups led by SCB X, Gulf Energy Development, and Charoen Pokmhand Group indicated interest in applying for a permit. WeLab, a Hong Kong-based digital bank, and Lighthub submitted a joint application, while Singapore-based Sea Ltd partnered with Bangkok Bank for a bid, according to their statements.

Billionaire Dhanin Chearavanont’s CP Group in March revealed a planned a bid with partners including China’s Ant Group. Gulf Energy, backed by tycoon Sarath Ratanavadi, is partnering up with Krung Thai Bank and PTT among others.

SCB X has formed a consortium including China’s WeBank and South Korea’s KakaoBank for the virtual bank licence, the group said in March.

BOT will determine the qualifications and capabilities of those applicants before proposing qualified operators to the finance minister for final approval. BLOOMBERG