Yahoo Finance Thai tycoons heat up new virtual bank licenses as bids open
By Anuchit Nguyen and Suttinee Yuvejwattana
(Bloomberg) — Charoen Pokphand Group and Gulf Energy Development Pcl, among Thailand’s largest business groups, are vying for the country’s new virtual bank licenses as the Bank of Thailand opens applications.
True Money, a financial technology arm of CP Group, and its partners including Ant Group are in the process of preparing a bid, said Suphachai Chearavanont, the group’s chief executive officer. Gulf Energy, the nation’s top power producer, will submit the bid in partnership with Krung Thai Bank Pcl and its affiliate Advanced Info Service Pcl, according to Chief Executive Officer Sarath Ratanavadi.
Southeast Asia’s second-largest economy is opening its banking industry to more competition that will allow greater access to loans for under-served consumers, following similar moves across Asia where such digital banks are already up and running. The central bank plans to announce the winning bidders next year as it began accepting applications from interested groups on Wednesday until Sept. 19.
“We have seen the greater importance of advanced technology in the financial industry,” Suphachai told reporters Wednesday. Gaining a “virtual bank license will help us reach out to a large group of consumers,” he said.
Gulf Energy expects getting a new virtual bank license will help accelerate its expansion into online businesses such as cryptocurrency trading and digital lending, said Sarath, who spoke to reporters late Tuesday.
Thailand may grant more than three such licenses as it seeks to boost competition in the industry, according to the central bank. Successful applicants will be announced in 2025 and are expected to begin services about a year earlier, it said.
The Chearavanont family has a net worth of $31 billion — making them one of Asia’s richest clans — according to the Bloomberg Billionaires Index report. Sarath is Thailand’s second-richest person with net worth of about $10 billion.
CP Group and Gulf Energy will join SCB X Pcl, which controls the country’s largest commercial lender by market value, in their bids. SCB X plans to announce a new partner from China this week to apply for the new virtual banking permit, CEO Arthid Nanthawithaya said.
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