Virtual banks to revolutionise Thailand’s financial landscape

The Royal Gazette announced that virtual banks are set to become a reality in Thailand, with the Bank of Thailand (BoT) accepting applications from March 20 to September 19 this year. The aim is to stimulate competition and ensure the stability of the financial system, without limiting the number of licences available.

Virtual banks are expected to cater to customers who have been underserved by traditional banking services, including SMEs struggling to secure capital and low-income individuals. This is hoped to reduce reliance on informal borrowing channels, as traditional banks often reject applications for unsecured loans.

The BoT hopes that the creation of virtual banks will lead to lower interest rates and fees, as operating costs for purely digital services are lower due to fewer staff and no physical branches. This should also foster competition, resulting in virtual banks…