20.06.2025 06:55
Thailand's central bank announced on Thursday that three prominent groups have secured licenses to establish virtual banks within the country. These groups represent a diverse range of industries and include significant financial backing from Thailand's wealthiest individuals.
The successful applicants are a consortium led by Sarath Ratanavadi, the energy and telecommunications magnate; Charoen Pokphand Group, the sprawling conglomerate owned by billionaire Dhanin Chearavanont; and an international consortium headed by SCB X, incorporating expertise from digital banking giants like China's WeBank and South Korea's Kakao Bank. This diverse group of licensees promises a dynamic shift within Thailand's financial landscape.
The Bank of Thailand anticipates that these new virtual banks will foster innovation and increase competition, while simultaneously upholding the nation's financial stability. Mobile banking is expected to be a key service offered by these institutions, further enhancing accessibility and convenience for Thai consumers. Commercial operations are projected to commence within a year of the license issuance.
For Charoen Pokphand Group, this venture marks a significant diversification into the fintech sector, expanding its already extensive portfolio encompassing agribusiness, food, retail, e-commerce, media, real estate and telecommunications. This move further solidifies the group's position as Thailand's largest conglomerate and reflects the Chearavanont family's substantial $29 billion net worth, making them the country's second-richest.
Sarath Ratanavadi's participation aligns strategically with his existing investments in digital infrastructure, including data centers and cryptocurrency exchanges. This virtual bank initiative, managed by his Advanced Info Service (Thailand's second-largest mobile carrier), leverages his existing technological expertise and contributes to his $11.1 billion net worth.
While the long-term potential for these virtual banks is considerable, analysts like Piriyapon Kongvanich of Bualuang Securities express a cautious outlook. Kongvanich highlights that substantial initial investments and operating losses are anticipated, suggesting any significant positive financial impact will likely not materialize for at least five years. The substantial investment required before realizing substantial profit necessitates a long-term perspective for these ventures. Despite the immediate challenges, the introduction of these new virtual banks represents a noteworthy advancement in Thailand's financial technology landscape, laying the groundwork for future growth and innovation.
