# Big Thai companies compete to secure virtual bank licenses - Link: https://www.thailand-business-news.com/banking/132498-big-thai-companies-compete-to-secure-virtual-bank-licenses - Published: 2024-03-22T09:16:00+07:00 - Author: J. Allan The Bank of Thailand announced that it will start accepting applications for virtual bank business within the next six months. Several major corporations in Thailand are vying for the three virtual bank licences that are up for grabs, as the Bank of Thailand (BOT) has begun accepting applications on Wednesday (March 20). ADVERTISEMENT ## Key takeaways * Companies can apply for virtual bank licenses from March 20 until September 19 of this year. * The BoT and the Finance Ministry aim to review applications within nine months of closing the acquisition window. * Virtual banks, which operate exclusively online without physical branches, are poised to offer services primarily through digital channels. * Gulf Energy Development Plc, SCBX (Siam Commercial Bank), and CP Group are among the key contenders forming alliances and preparing to apply for the virtual bank licenses. The Bank of Thailand is accepting applications for three virtual bank licenses until September 19. Major corporations like Gulf Energy Development Plc, Siam Commercial Bank, and Charoen Pokphand Group are competing to establish virtual banks in partnerships with telecom and technology companies. The central bank aims to announce the license winners by June next year, with virtual banks expected to begin operations by June 2026. This new initiative aims to expand the digital transformation in Thailand while stimulating healthy competition within the Thai financial system, without compromising financial stability or consumer protection. Virtual banks, which operate exclusively online without physical branches, are poised to offer services primarily through digital channels. This model of banking is designed to cater to the tech-savvy population and aligns with the global trend towards digital financial services. The Bank of Thailand (BoT) is currently designing the selection criteria and regulations for virtual banks, with the application process beginning in 2023. The BoT and the Finance Ministry aim to review applications within nine months of closing the acquisition window. In addition, approved banks are expected to finalize preparations within one year so that by the end of those 18 months, banks have operational IT systems and working risk-management strategies.  The number of licenses issued to virtual banks is not limited to three. Gulf Energy Development Plc (Gulf) announced that they would team up with Advanced Info Service Plc (AIS), Krungthai Bank Plc (KTB), and PTT Oil and Retail Plc (OR) to establish a virtual bank. **Thailand innovation landscape** The initiation of virtual banks is poised to revolutionize customer service through modern technology facilitating convenient access to banking services.  It will also serve the underbanked and unbanked, giving them a chance to be integrated into the world of finance. It is a statement of intent from Thailand of how innovative it aims to be and includes all of its citizens in the financial equation. With the first successful applicants to be announced in the first half of 2025, there is a lot to look forward to if the general feeling of hope and expectation surrounding the virtual banks comes to fruition. ### Related**Posts** ### 󠀁[USD to THB Exchange Rate Today: Thai Baht Moves with Global Market Trends](https://www.thailand-business-news.com/banking/331689-usd-to-thb-exchange-rate-today-thai-baht-moves-with-global-market-trends)󠁿 ### 󠀁[Bank of Thailand Unveils Framework to Shield Financial Sector from Illicit Activities](https://www.thailand-business-news.com/banking/328409-bank-of-thailand-unveils-framework-to-shield-financial-sector-from-illicit-activities)󠁿 ### 󠀁[Tokenised Deposits vs Stablecoins: Why Thailand’s Cautious Path Differs from Hong Kong and Singapore](https://www.thailand-business-news.com/banking/321239-tokenised-deposits-vs-stablecoins-why-thailands-cautious-path-differs-from-hong-kong-and-singapore)󠁿 ### 󠀁[Thailand’s economy in July saw growth, boosted by the momentum of the global technology and AI cycle](https://www.thailand-business-news.com/banking/326128-the-thai-economy-in-july-expanded-from-the-previous-month)󠁿 Thailand has 17 conventional commercial banks, and the BOT noted that three virtual banks should be an appropriate number. Singapore has four virtual banks and 34 conventional banks, while Malaysia has three virtual banks and 42 conventional banks. In South Korea, the ratio is three virtual banks to 52 conventional banks. In conclusion, Thailand’s opening of applications for virtual banks is a landmark event that is set to redefine the financial services industry. It represents a significant step towards a more inclusive and technologically advanced banking system that promises to benefit consumers and businesses alike. As the world watches, Thailand is positioning itself as a leader in the digital banking revolution, setting a precedent for other nations to follow.