In a report dated Sept 12, UOB Kay Hian Research (UOBKH) says the credit approval process and lead time to open accounts are likely to be faster than traditional banks.
The three successful applicants will be announced in June 2025. The BOT and the Ministry of Finance (MOF) will allow the three virtual bank operators one year to prepare for operation. According to UOBKH, choosing only three operators will help limit competition in the virtual bank business.
According to UOBKH, there are five groups of inerested parties:
- Siam Commercial Bank (SCB) with KakaoBank (South Korea) and WeBank (China)
- Krungthai Bank (KTB) with Gulf Energy Development, PTT Oil and Retail Business (OR) and Advance Info Service
- Charoen Pokphand Group (CP Group) with Ant Group (Alibaba, China)
- Jaymart Group with KB Financial (South Korea)
- VGI with Bangkok Bank (BBL) and SeaMoney Thailand (Sea, Singapore)
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That said, the participating groups have not been confirmed. According to UOBKH, Seagroup might apply alone without any partners. "We expect to get more concrete information before the closing date on Sept 19. [A] group with a Thai bank will have an advantage. Meanwhile, the expertise of Ant group, which provides Alipay applications to billions of people, will benefit virtual banks in Thailand."
The analyst, Thanawat Thangchadakorn, adds: "We expect a virtual bank licence to enhance financial inclusion. We expect the SCB, the KTB group and CP groups to qualify, and foresee a spike in non-performing loans in the first phase of operations."
