Thailand Approves Three Virtual Banks to Boost Financial Innovation

According to PANews, Thailand has granted approval to three entities to establish virtual banks, aiming to foster financial innovation, expand access to underserved markets, and enhance competition within the banking sector. Following recommendations from the Bank of Thailand (BOT), the Ministry of Finance announced that a consortium led by Krung Thai Bank's ACM Holding Company Limited, a group comprising telecom giant Advanced Info Service and PTT Oil and Retail Business, and another consortium including SCB X, WeTechnology, and South Korea's KakaoBank have received preliminary approval. Out of five applicants, these three were selected after a comprehensive evaluation process focusing on their qualifications, digital business models, and ability to provide inclusive financial services. Regulators emphasized that this initiative seeks to improve service channels for retail customers and small and medium-sized enterprises (SMEs) through innovative digital means, particularly targeting those currently unbanked or underserved.