Gulf Energy Development Plc is entering the virtual banking sector in collaboration with Krungthai Bank Plc (KTB) and the telecom powerhouse Advanced Info Service Plc (AIS). This year, the partnership plans to apply for a virtual bank permit from the Bank of Thailand (BOT).
Sarath Ratanavadi, Chief Executive Officer of Gulf, expressed confidence in the partnership’s ability to promote the virtual bank market. According to Suphachai Chearavanont, the group’s CEO, True Money, CP Group’s financial technology business, and its partners, including Ant Group, are preparing a bid.
As new digital financial services are deployed, the BOT has stated that it will only issue virtual bank licenses to three businesses in order to maintain the financial system’s integrity.
According to Sarath, the BOT’s regulations for virtual banks will allow Thai customers to obtain loans at fair interest rates while simultaneously safeguarding the security of their digital transactions. The identities of the chosen candidates will be released in 2025, and they should begin getting services around a year earlier.
Gulf Energy hopes that getting a new license as a virtual bank will allow for faster expansion into online operations such as digital lending and cryptocurrencycurrency trading.
He said, “Using virtual banks will make it easier for clients to borrow between 10,000 and 100,000 baht.” “We intend to construct a new data center and broaden our presence in digital infrastructure next year, as the trend is shifting toward digital, AI, and cloud platforms.”
Thailand already has 17 traditional commercial banks, and the BOT believes that three virtual banks is an appropriate number. This is similar with the ratios observed in other countries where virtual banks supplement traditional banking systems, such as Singapore, Malaysia, and South Korea.