Thailand Post Ventures into Virtual Banking

[webfact]

Picture courtesy: Thailand Post

 

Thailand Post, the state-owned logistics giant, has announced plans to enter the burgeoning field of virtual banking. This strategic step aims to leverage the company’s extensive network and infrastructure, consisting of 1,600 branches nationwide and a delivery team of 25,000 postmen.

 

Two Paths to Entry

 

According to Dhanant Subhadrabandhu, President of Thailand Post, the agency is exploring two primary approaches to participate in the virtual banking sector. The first involves acquiring shares in a consortium applying for the Bank of Thailand’s virtual bank licences, which will be issued soon. The second option is positioning itself as a neutral virtual banking agent, offering support to all virtual banks.

 

Discussions Underway

 

Thailand Post is already in talks with several potential consortiums, though specific names have not been disclosed. Mr Dhanant believes joining a consortium could significantly expand Thailand Post’s business ecosystem and provide vital support to lenders.

 

Target Customers and Services

 

The company is keen to target migrant workers and Thai citizens who lack traditional employment documentation, who often find themselves underserved by conventional banking services. Acting as a neutral banking agent, Thailand Post could offer a myriad of services such as enabling cash deposits for unbanked customers through its extensive network.

Operational Support

 

Despite the digital nature of virtual banks, Thailand Post’s physical presence through branches and postmen can play a pivotal role. The agency’s staff could facilitate cash deposits into the virtual banking system, especially useful for hard-to-reach customer segments.

 

Thailand Post already serves as a banking agent for various traditional banks, allowing customers to deposit or withdraw money at its branches. This existing infrastructure could easily be adapted to support virtual banking services.

 

Industry Interest

 

A source within the fintech industry reveals that five consortiums are keen on applying for virtual banking licences. Notable contenders include SeaMoney Thailand, VGI in partnership with Bangkok Bank, SCB X with KakaoBank and WeBank, CP Group under TrueMoney, and a collaboration between Gulf Energy Development, Krungthai Bank, Advanced Info Service, and PTT Oil and Retail Business.

 

Conclusion

 

The Bank of Thailand plans to issue three virtual bank licences initially, with applications closing on 19th September. Thailand Post’s move into the virtual banking sector could revolutionize financial services for underserved populations, leveraging its vast network to provide essential services and fostering greater financial inclusion.

 

This initiative stands to not only diversify Thailand Post’s operations but also contribute significantly to the country’s digital financial infrastructure.

 

-- 2024-08-31

 

 

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[Tropicalevo]

Please Mr Thailand Post, stop pratting around with non postal issues and give us back a postman so that we can actually receive post.

[hotchilli]

5 hours ago, Tropicalevo said:

Please Mr Thailand Post, stop pratting around with non postal issues and give us back a postman so that we can actually receive post.

Had a maid the other day hand me some letters form the UK that had been put in a wheelie bin outside.

Appears the postman was too lazy to come up to the 5th floor and deliver them,so he dumped them in bin.

[LukKrueng]

8 hours ago, Tropicalevo said:

Please Mr Thailand Post, stop pratting around with non postal issues and give us back a postman so that we can actually receive post.

Works well in my area. The postlady in charge of my immediate area calls everyone there is a letter or parcel for me, asks if I'm home and sets a time for delivery. If I'm not at home but somewhere in the area she'd come to me