Digital-only Banks in Thailand: The Next Step to Digitization

In a bid to improve the overall banking landscape, Thailand is considering digital banks as an option. However, whether these Digi-banks will have licenses or not that’s yet to be determined. For now, comprehensive studies are being considered to look into all dimensions.

Virtual banking service has been growing with a shift in consumer lifestyles and tech development. To give you some examples there are many fintech firms in the country who have been making digital strides that provide financial services like payment via a digital platform.

In fact, countries like Japan, China, and South Korea have already taken to digital-only banking facilities. And in Singapore, Taiwan, and Hong Kong bank licenses were issued last year, whereas Malaysia is expected to accept license applications soon.

One of the biggest benefits of digital-only banks can function at a lower cost while offering different services. However, having said that, predicting the digital model’s success is quite difficult as it involves a lot of regulatory decisions, says Siam Commercial Bank’s chief executive. For them, at present, this service could only be offered by the subsidiary SCB 10X Co Ltd.

SCB, on the other hand, will play a role in operation management particularly cost and asset quality control, alongside resource management meanwhile SCB 10X will be catering to the bank’s S-curve growth as well as income contributors in the long-run.

On Kasikornbank said that they will pursue working on the development of the digital platform in order to offer financial services. Besides they have been looking for new business opportunities, including digital banking.