Advanced Info Service (AIS) and Krungthai Bank (KTB) have teamed up to invest in a virtual bank that will serve both existing and new customers.
KTB president Payong Srivanich stated that KTB and AIS signed a memorandum of understanding to jointly invest in a virtual bank, which will offer regular banking services online without the need for physical branch offices. He said that the partnership reflects the business expansion for both parties.
Currently, financial institutions are waiting for the Bank of Thailand to issue virtual bank regulations, which are likely to be announced soon. The Central Bank has been drafting licensing guidelines and researching virtual bank models in various countries, stressing that the guidelines would be in line with the Thai economy and market environment.
The Bank of Thailand has stated that financial institutions with commercial banking licenses will not be permitted to apply for virtual bank licenses since such licenses should be focused on new unbanked and underbanked consumers rather than existing clients. However, other entities that are a part of a commercial bank group but lack banking licenses are eligible to apply for virtual bank licenses.
Some commercial bank executives have previously shown interest in applying for virtual bank licenses pending the publication of regulations. They expect that licensing will enable them to explore more business opportunities in the digital era. (NNT)
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