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Bangkok Bank Explores Virtual Banking Opportunities

Bangkok Bank Explores Virtual Banking Opportunities

Bangkok Bank (BBL) is exploring opportunities in virtual banking as it adapts to digital banking services in response to evolving customer preferences.

BBL President Chartsiri Sophonpanich stated that the bank is considering the new virtual bank license being introduced by the Bank of Thailand. He emphasized that the bank is aligning its operations with the digital era through a transition to digital banking.

The central bank is set to start accepting applications for virtual bank licenses in September of this year.

Three business consortiums have shown intentions to apply: SCB X, which is the financial technology conglomerate and holding company of Siam Commercial Bank; Charoen Pokphand (CP) Group; and Gulf Energy Development (Gulf).

VGI, the advertising and financial service division of BTS Group, has also expressed interest in virtual banking by seeking partnerships with a major local financial institution. Given BBL’s strong ties with the BTS Group, it is considered a potential partner for this new venture.

Mr. Chartsiri chose not to speculate on market expectations but noted that the bank is embracing digital services in light of changing customer demands. He pointed out that both retail and business customers are increasingly opting for digital finance solutions, which is prompting BBL to adjust its operations accordingly.

VGI has recently announced its plans to apply for a virtual bank license in collaboration with partners and is currently in discussions about this initiative. Notably, VGI does not aim to be a major shareholder in the virtual bank, planning to hold no more than 25% in the new entity under the central bank’s minimum registered capital requirement of 5 billion baht for virtual banks.

SCB X is working in partnership with South Korea’s KakaoBank and China’s WeBank to secure a new license. The Gulf consortium is teaming up with Krungthai Bank, Advanced Info Service (AIS), and PTT Oil and Retail Business Plc (OR), while CP Group is expected to utilize TrueMoney, an e-payment and financial service provider in Southeast Asia, along with Ant Group and retail outlets like 7-Eleven, to operate its virtual banking services.

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