Thailand's Virtual Banking Revolution: Implications and Responses
Thailand’s application window for new virtual banking licenses closes on September 19. Five groups are competing for three licenses, expected to start by mid-2026. Traditional banks like Kasikornbank and Kiatnakin Phatra Bank argue they already offer similar digital services. Virtual banks will focus on the 63% of Thais who are unbanked or underbanked and SMEs that find it hard to get loans. However, the high investment and risk involved make traditional banks cautious. Despite this, five consortiums are prepared to enter the market.
With the application window for Thailand’s new virtual banking licenses closing on Thursday, September 19, traditional banks are downplaying the potential impact of these new competitors.
Five consortiums are competing for three virtual banking licenses issued by the Bank of Thailand, with services expected to launch by mid-2026.
Only three major Thai banks—Krungthai Bank, Bangkok Bank, and SCB—have shown interest in bidding.
Traditional banks argue that their existing mobile banking services are similar to what virtual banks would offer.
Some, like Kasikornbank (KBank), led by CEO Kattiya Indaravijaya, are not pursuing virtual licenses and instead focus on digital subsidiaries to support underserved groups.
Virtual banks aim to serve the 63% of Thais who are unbanked or underbanked and SMEs struggling with traditional loan access.
SMEs, which represent 99% of Thai businesses and provide 9.7 million jobs, stand to benefit significantly.
Kiatnakin Phatra Bank (KKP) and TISCO Group are also unfazed by the new competition, seeing it as a push for broader innovation in digital banking.
Applicants for virtual licenses must have a minimum capital of five billion baht.
The high investment and risk associated with lending to underserved markets make traditional banks cautious.
Despite the challenges, five consortiums—SeaMoney Thailand, SCB X, Charoen Pokphand Group, Gulf Energy with Krungthai Bank, and VGI with Bangkok Bank—are ready to enter the market.
Five consortiums are competing for three virtual banking licenses issued by the Bank of Thailand, with services expected to launch by mid-2026.
Only three major Thai banks—Krungthai Bank, Bangkok Bank, and SCB—have shown interest in bidding.
Traditional banks argue that their existing mobile banking services are similar to what virtual banks would offer.
Some, like Kasikornbank (KBank), led by CEO Kattiya Indaravijaya, are not pursuing virtual licenses and instead focus on digital subsidiaries to support underserved groups.
Virtual banks aim to serve the 63% of Thais who are unbanked or underbanked and SMEs struggling with traditional loan access.
SMEs, which represent 99% of Thai businesses and provide 9.7 million jobs, stand to benefit significantly.
Kiatnakin Phatra Bank (KKP) and TISCO Group are also unfazed by the new competition, seeing it as a push for broader innovation in digital banking.
Applicants for virtual licenses must have a minimum capital of five billion baht.
The high investment and risk associated with lending to underserved markets make traditional banks cautious.
Despite the challenges, five consortiums—SeaMoney Thailand, SCB X, Charoen Pokphand Group, Gulf Energy with Krungthai Bank, and VGI with Bangkok Bank—are ready to enter the market.
