- Thailand accepts virtual banking permit applications to boost financial inclusion.
- Applicants must demonstrate adequate experience and capital to operate virtual banks.
- Thailand aims to leverage technology to serve the underbanked population effectively.
Thailand embarks on a digital transformation journey by accepting virtual banking permit applications for the next six months. This strategic move by the nation’s Finance Ministry aims to extend financial services to the underbanked and unbanked segments of the population.
Bridging the financial inclusion gap
Leveraging cutting-edge technology, virtual banks offer a promising solution to tackle the prevalent issue of limited access to traditional banking services. To operate a virtual commercial bank, applicants must demonstrate adequate business experience and capital reserves.
While no cap has been set on permits, the authorities will thoroughly evaluate proposals to ensure alignment with Thailand’s financial systems.
Stringent criteria for virtual bank applicants
Major Thai banks like SCBX have partnered with firms like KakaoBank to pursue virtual banking licenses, mirroring similar initiatives in Singapore. The review process will take nine months, with approved banks given a year to commence operations.
By embracing virtual banking, Thailand hopes to drive financial inclusion and leverage technology to serve the unbanked segments of society effectively.
This digital transformation aligns with the nation’s broader goals of promoting innovative financial solutions.
To read the original article in its entirety: https://www.techinasia.com/thailand-virtual-banking-permit-applications
