VGI Public Company Limited (SET: VGI), a prominent player in Thailand’s media sector, is set to venture into the virtual banking domain in collaboration with a major local bank and a conglomerate based in Singapore. This strategic move, aimed at obtaining a virtual bank license, is anticipated to streamline operational costs for VGI, potentially enhancing its profit margins.
According to Mr. Kavin Kanjanapas, Director of VGI and CEO of BTS Group Holdings Public Company Limited (SET: BTS), the company, along with 3-4 partners, is preparing to submit the application for the virtual bank license early next month. VGI is expected to secure around 25% ownership in the joint venture.
While the specific details of the local bank partner have not been disclosed yet, there have been reports indicating interest from Singapore’s Sea Group in acquiring virtual banking licenses in Thailand. The conglomerate from Singapore aims to pursue the permit through Seamoney Thailand, a platform offering digital financial services, including payments and lending through ShopeePay and SPayLater.
With an extensive customer base of eight million from Rabbit Holdings Public Company Limited (SET: RABBIT), a real estate developer offering leasing, service, sales, and management solutions, VGI is well-positioned to expand its financial services footprint through its subsidiary, Rabbit Cash. Post-licensure approval, Rabbit Cash intends to introduce cash deposit and withdrawal services in addition to its existing digital lending offerings.
Mr. Kavin emphasized that despite VGI’s foray into virtual banking, the core focus of the company remains on Out-Of-Home (OOH) advertisements. He hinted at an upcoming merger or acquisition deal, underscoring VGI’s commitment to diversifying its business interests while maintaining its OOH media stronghold.
