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Thailand Virtual Banking Market

The Bank of Thailand (BOT) has decided to award licenses for virtual banks.  According to the BOT, virtual banks must not have physical branches, offering services only through digital channels.  The BOT remains a key regulator for virtual banks, ensuring economical pricing under open competition.  

In 2023, the BOT released guidance on the virtual bank licensing framework, which is the foundation for introducing virtual banks as new financial service providers.  The establishment of virtual banks is intended to broaden financial inclusion in Thailand, and virtual banks must prioritize unserved and underserved consumers, especially SMEs and individuals.  In March 2024, the BOT outlined the criteria for companies applying for a virtual bank license.  Interested parties can submit applications to the BOT until September 19, 2024, together with supporting documents and information.  After approval from the Minister of Finance, successful applicants must demonstrate their financial stability, IT systems, and risk management protocols, implementing operations within one year from the approval date. 

The key criteria of virtual banks include:  

  • Headquartered in Thailand with initial registered capital of at least $147 million in the first phase and $285 million in the second phase.
  • Provision of financial services to people without regular income, small and medium-sized enterprises, underserved and unserved groups, people without access to credit, and people with informal debt.
  • Prohibited from using deposit systems, credit systems, or Internet banking in conjunction with other financial institutions, either domestic or international.  
  • Subject to regulation, like other commercial banks, by the BOT. 

U.S. companies with financial services technologies and expertise are encouraged to contact Ms. Ora Boonyalug at the U.S. Commercial Service in Bangkok to explore business opportunities in the virtual banking sector.

This article is intended to give a general guideline about virtual banks in Thailand. Professional legal advice is recommended for specific circumstances. 

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