Big outlay for virtual banks

The three consortiums awarded virtual bank licences are projected to spend up to 5.7 billion baht in just one year from mid-2025 to develop digital platforms and offer products similar to their mobile banking counterparts, says Maybank Securities (Thailand).
The Bank of Thailand plans to issue three virtual banking licences by the middle of next year, requiring the recipients to start operating by mid-2026.
“We forecast each of the three consortiums to spend 1-1.9 billion baht during the first 12 months on IT systems and items such as property, plants, equipment and intangible assets,” said Maybank ICT analyst Wasu Mattanapotchanart.
In total, roughly 3-5.7 billion baht in capital expenditure is needed by the virtual banks before they can start operating in mid-2026, he said.
There are five applicants for the licences, comprising Krungthai Bank’s partnership with Advanced Info Service and PTT Oil and Retail Business (OR); SCB X’s partnership with South Korea’s KakaoBank and China-based WeBank; the alliance of Bangkok Bank, VGI, Sea Group, Sahapat Group and Thailand Post; Ascend Money (owned by Ant Group and CP Group) in partnership with Ant Group; and Lighthub Asset’s partnership with WeLab.
Lighthub Asset is a Thai fintech company co-founded by Chatachaval Jiravanon and Lightnet Group, and WeLab is a pan-Asian fintech platform.
Virtual banking operators need digital platforms and product offerings that should be similar to their mobile banking counterparts, said Mr Wasu.
With only 12 months to invest before the virtual banks have to start operating in mid-2026, Maybank expects heavy capital expenditure (capex) in the second half of 2025 and the first six months of 2026.
“After mid-2026, we expect virtual banks’ capex to continue as they need to maintain their IT systems, add new products/features and improve scalability. We have noticed recurring capex from KakaoBank, a leading digital bank in South Korea. From 2018 to 2023, KakaoBank’s average capex-to-revenue ratio was 3.3%,” he said.
Virtual banking products will likely need to be configured so loan application and approval processes are shorter and highly automated, noted the brokerage.
In addition, mobile apps offer value-added services within an ecosystem of points and privileges from virtual banking partners, said Mr Wasu.
Maybank anticipates Bluebik Group (BBIK) and Beryl 8 Plus (BE8) will be the prime beneficiaries of virtual banking investment because they are tech experts in the banking industry, with most of the top 10 banks in Thailand as clients.
Bluebik can perform product design and development as well as mobile app development. Virtual banking products should be similar to mobile banking products for retail customers, according to the brokerage.
Bluebik can also offer project management services, ensuring budget, quality and timeline for a virtual banking project is on course.
The company should also enjoy indirect benefits because virtual banks will absorb the supply of tech services and system implementation, resulting in easing competition in other project bids, said Mr Wasu.
For Beryl 8, the revenue from virtual banking will likely come from the implementation of customer relationship management platforms, software integration, call centre systems and cybersecurity systems, he said.