Thailand’s push for virtual banking may cement dominance of the big boys
The country aims to spur competition, but the process may consolidate power among big players, as high capital requirements shut out smaller fintechs and stifle innovation
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[BANGKOK] Thailand’s push for virtual banking, with three licences up for grabs, promises to improve financial access for the underbanked and boost competition.
However, the licensing process may instead reinforce the dominance of the country’s largest banks and conglomerates.
Three of the five applicants for the country’s first virtual bank licences are leading Thai banks – Krungthai Bank, Bangkok Bank and SCB X – which have all paired up with some of the country’s most powerful conglomerates.
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