The Digital Economy and Society (DES) Ministry has announced plans to support Thailand Post as it offers a neutral banking agent service to prospective virtual bank operators.
Wisit Wisitsora-at, the DES permanent secretary, highlighted Thailand Post’s key strength—its extensive nationwide network of carriers capable of providing first-mile logistics. He noted that the organization specializes in door-to-door delivery and boasts a workforce of over 25,000 carriers familiar with local communities across the country.
While virtual banks will primarily deliver services through their digital platforms, Thailand Post can assist by offering physical contact points through its offices and network, facilitating operations for virtual banking services.
The proposed service aims to target unbanked populations and migrant workers who earn daily cash, allowing mail carriers to accept cash deposits and deposit them into the virtual banking system.
Dhanant Subhadrabandhu, President of Thailand Post, mentioned that discussions have begun with a virtual bank licensee regarding the business potential of a neutral banking agent service. The company can provide various operational support functions to multiple virtual bank providers.
One focus group for the service would be migrant workers and Thais without payslips. Mail carriers could deliver virtual banking and related services directly to homes, leveraging Thailand Post’s 1,600 branch offices nationwide.
Currently, Thailand Post already operates a banking agent service allowing customers to deposit and withdraw money at post office branches, serving all banks nationwide.
Dhanant stated that Thailand Post aims to transform last-mile delivery into a first-mile service, positioning itself as the first choice for various community needs.
Recently, Thailand Post has realigned its business strategy to emphasize specialized logistics services, such as medical supply deliveries for humans and pets, to better manage volume fluctuations and associated risks.
In recent developments, the Ministry of Finance approved three virtual banking license applicants—ACM Holding Co (TrueMoney), backed by Charoen Pokphand Group; Krungthai Bank, in partnership with Advanced Info Service and PTT Oil and Retail Business; and the SCB X group, comprising Siam Commercial Bank, South Korea’s KakaoBank, and WeBank, known for its advanced digital banking technologies.
These licenses were granted after a thorough review by the Ministry of Finance and the Bank of Thailand, based on five submissions received between March 20 and September 19, 2024. The newly licensed virtual banks are expected to launch operations within a year.
