The board of Thailand Post, a logistics provider, has approved the state agency’s participation in the upcoming virtual banking sector, as announced by President Dhanant Subhadrabandhu.
Thailand Post is exploring two avenues for entering the virtual banking space, including acquiring shares in a consortium applying for virtual bank licenses from the Bank of Thailand. The agency could also serve as a neutral virtual banking agent to enhance the operations of all virtual banks.
The initiative aims to create new business opportunities by leveraging Thailand Post’s extensive network of 1,600 branches and a door-to-door delivery system managed by 25,000 postmen who are well-acquainted with local communities.
Mr. Dhanant indicated that discussions are underway with several consortiums interested in applying for a virtual bank license next month, though he refrained from naming these groups.
Direct involvement in a consortium could allow Thailand Post to broaden its business ecosystem and support lenders’ activities.
“One target customer group for virtual banks includes migrant workers, as well as Thais without pay slips from employers,” he explained.
Thailand Post is also negotiating with some potential consortiums to assess the feasibility of acting as a neutral banking agent. The company could develop a neutral banking agent system to assist virtual banks in exchange for operational fees.
Although virtual banks primarily offer digital services, the branches and postmen of Thailand Post can help facilitate operations, particularly for unbanked customers or migrant laborers. The postmen can assist these segments in depositing cash into the virtual banking system.
Thailand Post can further support virtual banks by providing various services through its nationwide branches. The company currently operates a banking agent service for all banks, allowing customers to deposit or withdraw money at its locations.
“I believe the primary focus of virtual banks will be to attract deposits into the system with competitive interest rates before launching products and services aimed at underserved and unserved populations,” Mr. Dhanant stated.
FIVE POTENTIAL CONSORTIA
According to an anonymous source in the fintech sector, five consortiums have shown interest in applying for a license, including SeaMoney Thailand, which offers digital financial services, payments, and lending through ShopeePay and SPayLater in Thailand.
Shopee, Southeast Asia’s leading e-commerce platform and a subsidiary of Singapore’s Sea Group, also operates MariBank, a digital bank in Singapore with a full digital banking license from the Monetary Authority of Singapore.
The Bank of Thailand intends to issue three virtual bank licenses in the initial phase, with the application deadline set for September 19.
Recently, VGI, the advertising and financial services division of BTS Group, expressed interest in virtual banking through a partnership with Bangkok Bank, with Jaymart as another potential ally.
The remaining three consortiums include SCB X, the holding company of Siam Commercial Bank, Charoen Pokphand (CP) Group, and Gulf Energy Development.
SCB X is collaborating with KakaoBank, South Korea’s largest digital bank, to form a consortium for the virtual bank license application, while also partnering with WeBank, a leading global digital bank recognized for its advanced technology.
CP Group plans to operate a virtual bank service under TrueMoney, a provider of e-payment and financial services in Southeast Asia.
Gulf is partnering with Krungthai Bank, Advanced Info Service, and PTT Oil and Retail Business.
