Thailand has approved three applicants to establish virtual banks, in a move aimed at promoting financial innovation, expanding access to underserved markets, and enhancing competition in the country’s banking sector.
The Ministry of Finance, acting on the advice of the Bank of Thailand (BOT), said that ACM Holding Company Limited, a consortium led by Krung Thai Bank along with telecom giant Advanced Info Service and PTT Oil and Retail Business, and another consortium comprising SCB X, WeTechnology, and South Korea’s KakaoBank have been granted initial approval to proceed.
The announcement follows the Ministry’s issuance of licensing rules in February 2024 and a six-month application window that closed in September.
A total of five applications were submitted, and the three successful groups were selected after a detailed assessment process that focused on applicants’ qualifications, digital business models, and ability to offer inclusive financial services.
Regulators said the aim is to improve service access for retail customers and small and medium-sized enterprises (SMEs), especially those currently unbanked or underserved, through innovative digital channels.
The virtual banks are expected to enhance customer experience, offer more competitive financial products, and strengthen the efficiency of the overall financial system.
Each approved group must now establish a public limited company and meet the Ministry’s conditions.
They must also pass a readiness assessment conducted by the BOT before applying for a formal license. Business operations are required to commence within one year from the date of approval, issued on June 19, 2025.
The BOT emphasized that the review process was conducted with transparency and equal treatment for all applicants, with measures in place to prevent conflicts of interest.
The central bank said the limited number of licenses granted was intended to stimulate competition while preserving financial stability.
Thailand’s move aligns with similar initiatives in regional markets such as Singapore and Malaysia, which have rolled out virtual banking frameworks to encourage digital-led financial inclusion.
