Following this announcement, the collaboration is expected to start a local launch of branchless banking solutions amid a digital push. KakaoBank and SCBX will combine their expertise and suite of solutions to establish a local virtual bank.
In addition, both financial institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
Throughout this collaboration, the new venture was modeled on South Korea’s digital-only banking framework and it is expected to provide banking tools exclusively through a digital platform. This process will also bypass the need for physical branches in the local market.
The Bank of Thailand closed its application window for virtual bank licences in September 2024, as virtual financial institutions in the region are required to operate within a year of receiving the licence. Kakaobank will continue the process of submitting its licence application in September, with SCBX’s support.
Officials and executives from both financial institutions discussed plans to increase financial accessibility and strengthen the digital system for customers and clients in the region of Thailand. The joint strategy is set to establish a secure, efficient, and improved virtual bank that optimises the competitive landscape of Thailand’s banking sector. At the same time, it will focus on supporting financial inclusion for underserved populations, as well as improving the overall customer experience and satisfaction.
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