Picture courtesy of Bangkok Post
The winners of the Bank of Thailand’s virtual bank licences are expected to face significant challenges in achieving profitability in the initial years, as the industry typically experiences high cash burn during the first five years, according to KGI Securities.
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The winners of the Bank of Thailand’s virtual bank licences are expected to face significant challenges in achieving profitability in the initial years, as the industry typically experiences high cash burn during the first five years, according to KGI Securities.
Siam Commercial Bank (SCB) is projected to benefit the least from a virtual bank licence compared to other Thai banks applying, stated the brokerage.
Out of the five contenders, three groups are led by Thai commercial banks: Krungthai Bank (KTB), Bangkok Bank (BBL), and SCB. The remaining two groups consist of a Charoen Pokphand (CP)-Ant Group alliance and a Lightnet Group-WeLab partnership.
KGI bank analyst Chalie Kueyen noted that the central bank favours new entrants utilising open data and technology to enhance financial inclusion.
The application review process will take…