Bank of Thailand (BOT) has launched a consultation paper on digital bank licensing framework and targets to issue up to three licenses in 2024. The framework contains guidelines on balancing growth and innovation in the finance sector based on three principles. First, leveraging technology and data to drive innovation and build infrastructure; second, managing the digital economy transition while being mindful of Thailand’s sustainability priorities; and last, safeguarding the system from emerging risks.
BOT’s assistant governor Tharith Panpiemras stated that some key considerations to obtaining a digital banks license are a solid business plan and the ability to serve the underserved better than traditional banks. Digital banks must also offer ways to deliver a cheaper, faster and seamless user experience.
In the past two years, financial regulators in Singapore, Malaysia, the Philippines, and Indonesia have awarded multiple digital bank licenses. Vietnam is also preparing for its digital banking forays as its Cake Bank recently attracts more than 1.5 million customers in a year. Tonik Bank is all the hype in the Philippines, breaking national records after reaching $100M in customer deposits in just eight months. Likewise, the Indonesian Bank Jago and Neobank have enjoyed profitability triumphs since 2021, with some new digital banks lining up to enter the market.
