Thailand is set to introduce virtual banking services by 2025, with the Bank of Thailand (BOT) planning to issue three initial virtual banking licenses. This initiative aims to enhance financial inclusion by serving the unbanked and underbanked populations in the country. Companies interested in obtaining these licenses must meet a minimum capital requirement of 5 billion baht, which will increase to 10 billion baht in the future. Notable firms expressing interest include VGI, Bangkok Bank (BBL), Siam Commercial Bank (SCB), CP Group, and Gulf Energy. The framework for applications took effect on March 19, 2024, and the operations of the first licensed virtual banks are expected to commence in 2025. The BOT's goal is to complement traditional banks rather than replace them, fostering competition that may push existing banks to enhance their digital services.
In parallel, Thailand will distribute 145 billion baht (US$4.2 billion) of its 'digital wallet' handout programme earlier than scheduled to support vulnerable groups, as stated by Deputy Finance Minister Julapun Amornvivat on September 9, 2024. The government has prepared a total of 450 billion baht (US$13.29 billion) for the programme, aiming to transfer 10,000 baht to 50 million Thais. The rollout was initially planned for the last quarter of 2024, but the urgency to support the economy has prompted an earlier distribution. As of now, 32 million people have registered for the programme, which will provide funds via a smartphone application. Critics, including former central bank governors, have labeled the handout scheme as fiscally irresponsible, while the government insists it is necessary for economic stimulation, projecting a growth of 2.6% for the year.
This move comes amid ongoing economic challenges in Thailand, where the government is also implementing a 500 billion baht handout plan to stimulate the economy. Thaksin Shinawatra, a former Prime Minister, has endorsed this handout initiative, which aims to provide financial support to 50 million Thais. The introduction of virtual banking is seen as a significant step towards modernizing Thailand's financial landscape and improving access to banking services for all citizens. As the economy continues to recover, the BOT's initiative could play a crucial role in reshaping the banking sector and addressing the needs of underserved communities in Thailand.