Big names chase virtual bank licences

Five consortia confirm interest as applications close, with winners to be picked next year

Competition for new virtual bank licences has intensified, with five major business groups confirming their intentions prior to the deadline for submissions on Thursday.

An unspecified number of licences will be jointly issued by the Bank of Thailand and the Ministry of Finance. The central bank will announce the winning bidders in the first half of next year and grant them one year to start operations.

Rumours had swirled for weeks about major Thai and regional business groups teaming up to pursue the potentially lucrative business. As the application window closed on Thursday, new light was shed on three of those groups:

They are the consortium of Lighthub Asset-WeLab; a partnership led by Singapore-based Sea Limited (Sea), the parent of Shopee; and Ascend Money, a financial technology firm backed by the Charoen Pokphand (CP) Group.

Two other consortia confirmed their applications earlier. One includes Krungthai Bank (KTB), Gulf Energy Development and PTT group. The other is the partnership of SCB X, KakaoBank, South Korea’s largest digital bank, and WeBank, a global digital bank known for its advanced technology.

Lighthub Asset, a Thai fintech company, and WeLab, a pan-Asian fintech platform, said in a statement that they aimed to empower Thailand’s financial future by revolutionising banking services and delivering an AI-powered intelligent.

Lighthub Asset was co-founded by Chatchaval Jiaravanon and Lightnet Group.

Mr Chatchaval, a member of Chearavanont family of CP fame, also co-founded the finance firm Aeon Thana Sinsap and the securities brokerage Finansia Syrus. He has over 30 years of experience in the Thai financial sector and internationally, and is also the principal owner of the global media brand Fortune Magazine.

Lightnet Group, which had its origins in Thailand, is licensed by the Thai central bank and four other central banks in Asia and Europe. It processes over $10 billion in annual fund volume.

Lightnet offers global payment solutions, including cross-border money transfers, digital wallets and multi-currency virtual bank accounts across 150 countries. Notable strategic investors in the company include UOB Venture Management, Seven Bank, Hanwha Investment & Securities, Uni-President, and Raffles Family Office.

WeLab has over 65 million users in Asia, disbursing more than $15 billion in digital loans to date. It offers  consumer financing, enterprise technology solutions and digital banking – encompassing savings, payments, loans and wealth management.

With its successful virtual banks in Hong Kong (WeLab Bank) and Indonesia (Bank Saqu), WeLab is recognised as Hong Kong’s most innovative company and won the Virtual Bank of the year.

WeLab is backed by global investors such as CK Hutchison’s TOM Group, Allianz, the World Bank’s International Finance Corp, and the Malaysian sovereign wealth fund Khazanah Nasional Berhad, among others.

The consortium says it aims to provide underserved segments with immediate access to “intuitive” financial products, starting with access to credit and advanced-AI planning tools. Over the longer term, it aims to help individuals and micro, small and medium enterprises (MSMEs) sustainably grow their wealth for long-term financial independence and stability.

MR Chatu Mongol Sonakul, an adviser of the consortium and former governor of Bank of Thailand, said he welcomes the central bank’s initiative to invite new market entrants to foster greater innovation and competition in the financial sector.

“We look forward to the opportunity to build our third virtual bank in Asia and make this Thailand’s leading virtual bank,” added Simon Loong, founder and group CEO of WeLab.

The Sea Limited partnership, meanwhile, is made up of Bangkok Bank, BTS Group (via VGI’s subsidiary), Saha Group and Thailand Post. IT aims to tap each company’s complementary strengths to offer innovative digital financial services, focusing on improving access to services for underserved segments.

As the parent company of Shopee and the digital financial services platform SeaMoney, Sea says it has significant experience building and running successful digital banks across Southeast Asia, says the company.