Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.
Hello reader,
One of the more recent newsworthy developments in European football is the English Premier League’s profitability and sustainability rules (PSR), which punish teams that spend beyond their means with points deductions.
In theory, this should level the playing field. In practice, however, only mid-sized and smaller teams have been punished so far while bigger teams appear to be getting away scot-free.
Time will tell whether the PSR will have the desired effect, but this is just one example of how things that look good on paper might not play out as expected.
Today’s premium article looks at Thailand’s virtual banking push. While the drive is supposedly meant to improve financial access for the underbanked and boost competition, it may instead reinforce the dominance of the country’s largest banks and conglomerates.
Read on to find out more.
Today we look at:
- The unintended consequences of Thailand’s virtual banking push
- How the conflict in the Middle East is shaking the stock markets
- Other newsy highlights such as Oracle putting US$6.5 billion toward building Malaysia’s cloud infrastructure and Peak XV’s latest fee changes
Premium summary
What would it take to really level the playing field?
Image credit: Timmy Loen
There’s a saying that goes “no plan survives first contact with the enemy.” Initiatives need tweaking once things get underway, and if Thailand’s virtual banking push is really meant to increase competition, then adjustments are definitely needed.
- Centralization: Three of the five applicants for the country’s newest virtual banking licenses are leading Thai banks – Krungthai Bank, Bangkok Bank, and SCB X. These players have all paired up with some of the country’s most powerful conglomerates.
- Not that small, after all: The team of Ascend Money – owned by conglomerate CP Group – and Ant Group, which is a stakeholder in Ascend, is one of the other applicants. Lighthub Asset, which was founded by CP Group scion Chatchaval Jiaravanon, teamed up with pan-Asian fintech platform WeLab to put in a bid as well.
- High barrier to entry: The high capital requirement of the license has limited virtual bank applicants to Thailand’s big banks and conglomerates, which are increasingly dominating all aspects of the Thai economy.
Read more: Thailand’s virtual banking push may consolidate power of bigwigs
Bad news, bad day for the stock market
Oliver Jay of OpenAI to headline SYNC 2024
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
