Following the announcement of criteria, methods, and conditions for applying for licenses to operate branchless commercial banks (Virtual Banks) by the Ministry of Finance, Siam Commercial Banks (SCB) has been accepted for application submissions starting from March 20, 2024. The deadline for interested parties to file applications to establish such banks is September 19, 2024.
A consortium will start submitting applications for licenses to operate branchless commercial banks (Virtual Banks) today, according to the latest report from the commercial banking industry.
A source close to the matter stated that a consortium consisting of Advanced Info Services Public Co., Ltd. (SET: ADVANC), Kasikorn Bank (SET: KTB), and PTT Oil and Retail Business Public Co., Ltd (SET: OR) will file an application to establish the first Virtual Bank on September 10, 2024.
Gulf Energy Development Public Co., Ltd. (SET: GULF), previously considering investing in the venture, decided to step out as the company is now holding more than 40% of shares. This leaves only three entities in the consortium with ADVANC and KTB holding similar large shares while OR holds a smaller portion.
Another prominent group making waves is the CP Group. It will submit an application for a Virtual Bank license along with Ascend Money Co., Ltd., provider of True Money application, its subsidiary, and Kiatnakin Phatra Bank (SET: KKP). They are anticipated to finalize their submission within this week.
Earlier reports stated that CP Group will join Alibaba’s Ant Financial Services Group to submit for the license, but the Thai conglomerate decided to settle with a domestic bank instead.
BTS Group Holdings (SET: BTS), through its subsidiary VGI Pcl (SET; VGI), will also participate in the race for a license by joining Bangkok Bank (SET: BBL) and Singapore’s Sea Group.
Furthermore, Siam Commercial Bank (SCB) joined forces with KakaoBank from South Korea and WeBank from China to compete in this round of Virtual Bank licensing.
The Bank of Thailand will take approximately six months to evaluate applications after all documents have been submitted. The assessment of applicant qualifications is expected to take an additional nine months. The announcement of the first three licensed applicants is projected by mid-2025. However, if necessary, or in the case of numerous applications, the evaluation timeline may be extended by up to 3 months.
Following the selection process, preparations will commence to ensure operational readiness, staff training, and regulatory compliance checks. Virtual Bank operations are set to start after obtaining approval from the Ministry of Finance, with an estimated timeframe of 1 year. The earliest potential launch date for the first Virtual Bank service is projected for June 2026.
