Bank of Thailand to Allow Virtual Banks by 2025
Thailand will allow virtual banks to begin offering services in 2025. On January 12, the Bank of Thailand issued the Consultation Paper on Virtual Bank Licensing Framework, outlining a proposed framework for virtual banks to operate in Thailand. Virtual banks are expected to have lower staff and bank branch costs, expanding access to banking services for underserved segments of retail and SMEs. According to the consultation paper, virtual banks will be allowed to provide full-service banking business and will need to comply with the same regulations and supervision as traditional commercial banks. However, virtual banks will not be able to open physical branches or operate their own ATMs. Virtual banks must also meet certain qualifications to operate and will go through a restricted phase during the initial years of operation. According to Assistant Governor Tharith Panpiemras, the Bank of Thailand plans to issue three licenses in 2024 before operations begin, with ten parties already expressing interest to apply for permits. Applications for permits are expected to open in Q1 2023. Comments and suggestions on the proposed framework can be submitted to the Bank of Thailand through February 12.