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Thailand plans to launch virtual banking services by 2025
The introduction of virtual banks in Thailand is expected to have a significant impact on the traditional banking sector. With the first licensed virtual banks set to begin operations by mid-2025, the financial landscape is on the brink of significant transformation.
Thailand is embracing the digital revolution in finance with the introduction of virtual banking licenses, a significant milestone that promises to reshape the financial landscape of the country.
Key Takeaways
- VGI, BBL, SCB, Charoen Pokphand (CP) Group, and Gulf Energy Development are some of the companies interested in getting virtual licenses.
- The Bank of Thailand requires companies wishing to apply for licenses to have a minimum of 5 billion baht, which will later increase to 10 billion.
- In the initial phase of the virtual banking license issuance process, the Bank of Thailand plans to issue three licenses, subsequently increasing the number.
The BOT has laid out a comprehensive framework for the application and issuance of virtual banking licenses, which came into effect on 19 March 2024. This framework is designed to attract applicants with a strong background in technology and digital services, aiming to cater to the unserved and underserved segments of the population, including retail and SME customers.
Virtual banks promise to service the unbanked and underbanked segments of the population with dynamic financial solutions. This is not just about technology but also about reaching out to those who have been traditionally excluded from the banking system. With operations of the first licensed virtual banks expected to commence in 2025, Thailand is positioning itself in ASEAN’s digital banking sphere, following in the footsteps of Singapore and Malaysia.
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