Gulf Energy Development Plc is teaming up with telecom giant Advanced Info Service Plc (AIS) and Krungthai Bank Plc (KTB) to enter the virtual banking sector. The partnership plans to seek a virtual bank permit from the Bank of Thailand (BOT) this year.
Sarath Ratanavadi, Gulf’s chief executive officer, expressed confidence in the partnership’s ability to drive the virtual bank business forward. True Money, a financial technology arm of CP Group, and its partners, including Ant Group, are in the process of preparing a bid, said Suphachai Chearavanont, the group’s chief executive officer.
The BOT has announced that it will limit the issuance of virtual bank licenses to three entities to maintain financial system stability as new digital financial services are introduced.
Sarath thinks that the BOT’s rules for virtual banks will make it easier for Thai users to get loans at fair interest rates and keep digital transactions safe. Successful applicants will be announced in 2025 and are expected to begin services about a year earlier.
Gulf Energy expects getting a new virtual bank license will help accelerate its expansion into online businesses such as cryptocurrency trading and digital lending.
“Clients looking to borrow from 10,000 to 100,000 baht will find it easier to do so via virtual banks,” said Sarath. “The trend is moving toward digital, AI, and cloud platforms, and we plan to build a new data center next year, as well as extend our reach in digital infrastructure.”
Currently, Thailand has 17 conventional commercial banks, and the BOT considers three virtual banks an appropriate number. This aligns with the ratios observed in other countries, such as Singapore, Malaysia, and South Korea, where virtual banks complement the existing conventional banking landscape.
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