Following this announcement, the licences were issued through a review made by Thailand’s Ministry of Finance, based on several central bank recommendations. The other two institutions that secured the approval were ACM Holding Company and a consortium led by state-run Krung Thai Bank.
Furthermore, authorities assessed business models, digital capabilities, and each group's potential in order to boost financial inclusion, particularly for underserved consumers and small businesses. This approval will enable Kakao Bank to continue to focus on meeting the needs, preferences, and demands of clients and customers in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well.
According to officials of the manner, Thailand's central bank mentioned that the digital lenders are expected to improve customer experience, increase efficiency, and drive healthy competition through development and better pricing. At the same time, regulators also weighed the optimal number of new banks to foster healthy competition while maintaining the overall financial system stability. The approved candidates are also required to establish a corporate entity in Q3 and commence operations within one year, preparing the landscape for operations to begin in the second half of 2026.
In addition, Kakao Bank officials also mentioned that the firm aims to serve as a bridgehead for Korean banks and companies seeking entry into the Thai market, as it will also focus on providing businesses and individuals alike with optimised and secure digital finance technology.
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