Lede: The competition for Thailand’s virtual banking licences has intensified, with five major business groups confirming their interest ahead of the submission deadline. The Bank of Thailand and the Ministry of Finance will issue an unspecified number of licences, with the winners set to be announced in the first half of 2025. These new virtual banks aim to revolutionise the financial landscape, targeting underserved communities and boosting innovation in the sector.
The competition has drawn in significant players from both Thailand and the wider Asian region. Leading contenders include the consortium of Lighthub Asset and WeLab, Singapore-based Sea Limited (the parent company of Shopee), and Ascend Money, a fintech firm backed by the Charoen Pokphand (CP) Group. All groups are positioning themselves to capitalise on the growing demand for digital banking services in Thailand, particularly among underserved communities and small businesses.
Two other consortia have also thrown their hats into the ring: one led by Krungthai Bank (KTB), in collaboration with Gulf Energy Development and PTT Group, and another featuring SCB X, South Korea’s largest digital bank KakaoBank, and WeBank, a leading global digital bank renowned for its advanced technology.
Key Players and Their Vision
Lighthub Asset, a Thai fintech firm, has teamed up with WeLab, a pan-Asian fintech platform. The two aim to transform Thailand’s financial sector by leveraging artificial intelligence (AI) to offer intuitive banking services. Lighthub Asset, co-founded by Chatchaval Jiaravanon, who is also linked to CP Group, is backed by notable investors like UOB Venture Management and Hanwha Investment & Securities. Meanwhile, WeLab has already established successful digital banks in Hong Kong and Indonesia and has plans to replicate this success in Thailand.
The Sea Limited consortium has also garnered attention. Comprising Bangkok Bank, BTS Group, Saha Group, and Thailand Post, this group plans to utilise its combined strengths to develop innovative financial services, with a particular focus on improving access for underserved populations. Sea’s experience in operating digital banks across Southeast Asia positions it as a strong contender in the race for a Thai virtual banking licence.
Strategic Objectives
The aim of these virtual banking initiatives is to serve Thailand’s unbanked and underbanked populations, including micro, small, and medium-sized enterprises (MSMEs). These consortia plan to introduce advanced AI-driven financial products, such as digital wallets, multi-currency accounts, and personalised financial planning tools. Over time, their goal is to foster long-term financial independence and stability for individuals and businesses alike.
Industry Impact
Former Bank of Thailand governor and consortium adviser, MR Chatu Mongol Sonakul, has expressed his support for the central bank’s efforts to increase competition and innovation in the financial sector. Simon Loong, CEO of WeLab, echoed these sentiments, stating, “We look forward to building Thailand’s leading virtual bank and establishing our third virtual bank in Asia.”
Meanwhile, the Sea Limited consortium aims to leverage its experience from Shopee and SeaMoney to develop a seamless digital banking experience in Thailand.
With these five business groups competing for licences, Thailand’s financial landscape is set for significant transformation, as virtual banking becomes an increasingly central part of the country’s financial ecosystem.
