Digital banking is at a crossroads in Thailand. A small but not insignificant part of Thailand’s population is underserved by banks—as of 2021, research shows that banking penetration stands at 85 percent. Digital adoption in Thailand is high, with smartphones seeing 106 percent penetration and digital banking being used by 90 percent of customers who have bank accounts. But digital banking offerings are limited, with either digital banking extensions of large existing banks or digital players specialising in only certain aspects of banking such as lending or payments, leaving ample room for the growth of full-fledged digital banks.
Come 2024, the Bank of Thailand is planning to issue three new digital banking licenses in for operations that begin in 2025. How can players who vie for these opportunities better position themselves for success?
