BANGKOK – The Bank of Thailand (BoT) announced that the Ministry of Finance had given the green light for three consortia to set up Thailand’s first virtual banks. This step aims to boost competition, make financial services easier to access, and update the banking sector.
The groups chosen—SCB X, Krungthai Bank and Ascend Money—will start their digital banking services by mid-2026 after a detailed selection process and a year of preparation.
Virtual banks, sometimes called digital or branchless banks, offer their services entirely online. Customers use mobile apps and websites instead of visiting physical branches.
These virtual banks use modern technology to provide accounts, loans and payments, often at a lower cost. Countries like South Korea and China have seen success with this model, as banks such as KakaoBank and WeBank have reached people whom traditional banks often miss.
In Thailand, these new banks are set to change the way people use financial services. Virtual banks can stay open around the clock, make it easy for customers to open accounts, and offer financial products to suit different needs. Without the overheads of physical locations, they can reduce fees and offer better rates, especially for people in rural areas and young adults comfortable with technology.
The Virtual Bank Approval Process
The BoT’s work to bring virtual banks to Thailand began with public talks from January to February 2023, asking for feedback on the rules. The Ministry of Finance then shared its requirements for license applications in February 2024. The application window ran from March to September 2024 and attracted five groups hoping to secure one of the three licenses.
The selection process focused on fairness and transparency. The BoT and the Ministry of Finance reviewed each applicant’s financial strength, technology, and experience in digital services. Each group needed to show at least THB 5 billion in registered capital (about $150 million), with plans to double this within five years.
Strict rules stopped any conflicts of interest, and senior officials carried out interviews and checked all documents. The winning consortia were SCB X (with KakaoBank and WeBank), Krungthai Bank (with Advanced Info Service and PTT Oil and Retail Business), and Ascend Money (supported by Charoen Pokphand Group). Two other applicants—the Shopee consortium (Sea Ltd) and Lighthub Asset (with WeLab)—did not succeed.
Modernizing Banking in Thailand
Virtual banks are part of BoT’s plan to open up Thailand’s financial sector, long controlled by a few traditional banks. The central bank believes digital banking can drive new ideas and improve the customer experience. With tools like artificial intelligence and data analysis, virtual banks can create products for specific groups, such as loans tailored to freelance workers or small business owners new to formal banking.
BoT expects that these banks will help people who have not been served well in the past, such as those in the countryside or small businesses. For example, Ascend Money, which runs the TrueMoney app with 32 million users, plans to use its license to offer more credit and services to people who have struggled to access banking before.
Tanyapong Thamavaranukupt, co-president of Ascend Money, said the company wants to make banking more open and clear, with a focus on small businesses and those left behind by traditional banks.
The Bank of Thailand is also preparing new rules around “open data”, so customers can share their financial records between banks. This is set to become law later in 2025 and should make it even easier for people to get credit and use different financial services.
Bank of Thailand’s Approach
BoT describes itself as a regulator that supports progress but keeps a close eye on risk. The central bank’s official announcement says that the virtual bank plan is meant to boost competition while keeping the financial system safe. All new banks must set up as public limited companies, follow strict conditions, and pass a readiness check before they are allowed to operate.
The central bank also sees these banks as a way to help Thailand stay competitive internationally. For example, KakaoBank’s CEO, Yun Ho-young, described the licence as a chance to show off Korean digital banking technology, underlining the move’s global reach. Having partners like KakaoBank and WeBank involved highlights the potential for cross-border cooperation and new ideas.
Granting virtual bank licences is a big step, but there are hurdles ahead. These new banks must protect customer data and guard against online crime. They also need to address ongoing economic issues, such as slow recovery from the pandemic and high levels of household debt.
Still, there is a lot of promise. Virtual banks can attract new customers with free accounts, quick sign-ups, and original financial solutions. Their arrival is likely to push traditional banks to update their services.
By approving its first virtual banks, Thailand is making a clear move towards digital finance. With strong support from BoT and the Ministry of Finance, the country is set to stand out as a regional leader in online banking, opening up more opportunities for people and businesses. As the approved consortia get ready for a 2026 launch, many are watching to see how these banks will shape the future of finance in Thailand.
Sources: Bangkok Post, Bank of Thailand
