Thailand Post aims to utilize its extensive network and the expertise of its delivery personnel, who have access to underserved and unserved communities nationwide, to aid its consortium in obtaining a virtual bank license.
Strong Networks and Human Resources
With a vast network of 57,000 locations and 25,000 delivery staff members throughout the country, Thailand Post believes these assets will bolster the consortium’s capability to apply for the virtual bank license, stated Waraporn Kongkiewphan, the company’s chief corporate strategy officer.
Thailand Post is part of a consortium led by Shopee, which is seeking a virtual bank license from the Bank of Thailand. This consortium, headed by Sea Ltd., the parent company of Shopee, also includes Bangkok Bank, VGI (the advertising and financial services division of BTS Group), and Saha Group.
Thailand Post’s delivery staff, trained in various capabilities, can effectively reach remote and underserved areas across the country. The company’s customer relationship management system ensures that delivery personnel are well-acquainted with the recipients they serve, according to Ms. Waraporn.
“With our delivery staff’s expertise, we can ensure that deliveries reach the right recipients, even if the sender has provided incorrect address information,” she noted.
Financial Services
“Thailand Post has the capability to serve all areas and customers nationwide, including both unserved and underserved segments, which allows us to assist our financial institution partners in accessing these populations,” remarked Ms. Waraporn.
“Accessing the unserved and underserved Thais is a crucial requirement for the virtual bank licenses, which aligns with the Bank of Thailand’s goal of advancing financial inclusion.”
She added that Thailand Post is continually training its delivery staff in financial services to meet the needs of both customers and financial partners.
This initiative is part of Thailand Post’s broader business strategy that extends beyond logistics.
Online merchants comprise a significant customer segment for Thailand Post, many of whom require funding for business growth, but often struggle to obtain loans from traditional banks due to a lack of financial documentation.
Thailand Post aims to bridge this financing gap by supporting its consortium in the virtual banking space, stated Ms. Waraporn.
The company works alongside various financial partners, including banks, non-banks, e-wallet providers, and asset management firms, to offer transactions, loans, insurance, and identification services for non-performing assets.
According to her, financial services currently account for approximately 10% of Thailand Post’s total revenue, and this share is growing.
No Plans for Debt Collection
While providing various financial services, Thailand Post has no intentions of offering debt collection services, whether for its partners or under its virtual banking model, Ms. Waraporn clarified.
“We wish to preserve the positive reputation of our delivery staff, who are well-regarded for their friendly and familiar presence among Thais,” she stated. “Thailand Post does not plan to venture into debt collection.”
Competition for virtual bank licenses is fierce, with several potential applicants, Ms. Waraporn mentioned. Thailand Post and its consortium are currently awaiting the central bank’s announcement of the successful candidates, which is anticipated this mid-year.
Initially, the regulator intends to award three virtual bank licenses among five competing consortiums. Alongside the Shopee consortium, other contenders include the Gulf group (comprising Gulf Energy Development, PTT Group, and Krungthai Bank), the SCB X group (the holding entity for Siam Commercial Bank, KakaoBank—South Korea’s largest digital bank—and WeBank, a globally recognized digital bank known for its technology), and the Ascend Money consortium, a fintech firm backed by the Charoen Pokphand Group.
Additionally, a consortium formed by Lighthub Asset and WeLab has also applied for a license.
