Ascend Bank, the virtual bank backed by Charoen Pokphand (CP) Group, is expected to debut in July, says Suphachai Chearavanont, senior vice-chairman of CP Group and board chairman of True Corporation.
Rival Clicx Bank announced earlier this week it plans to launch its mobile app on June 19, aiming to tap underserved customers.
Clicx Bank, jointly established by Krungthai Bank, Advanced Info Service and PTT Oil and Retail Business, received its licence on May 14, the first of three applicants to obtain approval from the Bank of Thailand.
Mr Suphachai dismissed concerns that the group might be falling behind its rivals.
Starting operations a few months after competitors is not a significant issue for the group's long-term strategy, he noted.
Somchai Lertlarpwasin, assistant governor for financial institutions supervision at the central bank, said earlier the two other successful applicants for virtual bank licences requested delays for their business operations. These two applicants are CP-backed ACM Holding, and the SCB X consortium, which includes KakaoBank and WeBank.
Earlier Mr Suphachai said retail giant CP All does not plan to consolidate Counter Service Co, Thai Smart Card Co, and SET-listed CP Axtra (CPAXT) under ACM Holding.
However, under the central bank's regulatory framework, virtual bank licence applicants are required to consolidate financial businesses under their control into a single business group, separated from non-financial (real sector) operations.
He said CP All must follow the relevant requirements, including asking for the opinions of CP All shareholders on the matter.
CP All organised an extraordinary shareholders meeting on May 29 to decide on whether to approve the integration. The result is unlikely to disrupt the tentative roadmap for the virtual bank's debut, said Mr Suphachai.
On April 17, CP All held a board meeting in which many non-interested independent directors opposed the transfer of these three subsidiaries to ACM Holding.
Mr Suphachai said the launch of Ascend Bank is subject to the central bank's discretion, particularly concerning CP Group's organisational framework.
Arak Sutivong, deputy chief executive at SCB X, said its virtual bank Bank X is processing compliance procedures and expects to start operations later this year.
“We are processing the digital infrastructure and ensuring readiness and differentiation before offering services,” he said. “We do not believe early service providers necessarily have an advantage as the key factors are meeting customer needs and creating differentiation."
In a related matter, Mr Suphachai said Arise Ventures Group, the new major shareholder of True, plans to position artificial intelligence (AI) as the new infrastructure.
Mr Suphachai, who is also chief executive of Arise Ventures Group, said AI will disrupt the world faster and more profoundly than the arrival of the internet. Arise predicts AI will be "in everything" within 3-5 years, he said at an event hosted by Prachachat Turakij Thai-language newspaper yesterday.
