Ascend Bank could enter Thailand’s virtual banking market in July as the country’s first wave of virtual banks moves closer to launch, according to the Bangkok Post.
The CP Group-backed bank is being developed by ACM Holding, one of three groups approved by the Bank of Thailand to operate virtual banks.
Its expected debut would follow Clicx Bank, which plans to launch its mobile app on 19 June.
Clicx Bank was formed by Krungthai Bank, Advanced Info Service and PTT Oil and Retail Business.
CP Group Senior Vice-Chairman Suphachai Chearavanont sought to ease concerns over the launch schedule, saying the timing gap would not be material to the group’s broader strategy.
The July timeline still depends on clearance from the Bank of Thailand, particularly around CP Group’s corporate structure.
Thailand’s virtual banking rules require applicants to consolidate financial businesses under their control into a single group, separate from non-financial operations.
For CP Group, that has put focus on CP All’s proposed transfer of Counter Service, Thai Smart Card and CP Axtra to ACM Holding.
CP All has scheduled an extraordinary general meeting on 29 May for shareholders to vote on the restructuring.
Suphachai said the outcome is not expected to affect Ascend Bank’s tentative launch plan. The proposal has faced internal pushback.
At a 17 April board meeting, CP All’s disinterested directors opposed the inclusion of the three subsidiaries in ACM Holding’s virtual bank group.
SCB X is also preparing to launch Bank X later this year as it works through compliance and digital infrastructure preparations.
Its Deputy CEO Arak Sutivong said an early launch alone would not determine success, as virtual banks will need to stand out through their services and address clear customer gaps.
Featured image: Edited by Fintech News Singapore, based on image by vefimov via Magnific