Lighthub Asset and WeLab have come together to form a consortium committed to investing $500 million over five years to secure a virtual banking license from the Bank of Thailand. The consortium believes it is strategically positioned to address the financing gap facing micro, small, and medium-sized enterprises (MSMEs) and retail customers.
Lighthub Asset, a Thai fintech firm, and WeLab, a pan-Asian fintech platform, are among five groups vying for the virtual bank license in Thailand. The Bank of Thailand is expected to announce the winning bids by mid-2025.
If awarded the license, the consortium plans to launch digital banking services under an ‘Every time, every moment’ platform for all Thais within 6-12 months. The goal is to break even within 3-5 years of operation and provide customers with financial solutions to meet their immediate needs, grow their wealth, and achieve financial independence.
Lighthub Asset, with 46 million Thai customers and a wide-ranging ecosystem, has a robust local network of 150,000 touchpoints. WeLab, with more than 65 million users in Asia, offers various digital financial services, including consumer financing, enterprise technology solutions, and digital banking.
WeLab has successfully launched virtual banks in Hong Kong and Indonesia, offering a suite of digital banking products such as savings, lending, payment, wealth and retirement planning, and virtual accounts. The platform processes a loan application every 3.8 seconds, showcasing its efficiency in serving customers.
The consortium’s strength lies in financial inclusion through the innovative use of alternative data and big data analytics for credit scoring. WeLab’s advanced technology and algorithms have significantly improved the speed and accuracy of credit assessment, contributing to its success in the fintech industry.
Hirankrit Arunanondchai, director of Lighthub Asset and chief executive of Lightnet, highlighted the challenge facing virtual banks in Thailand, which is to address the financing gap of 1.4 trillion baht for underserved MSMEs and retail segments. With a significant portion of the Thai population lacking access to formal financial services, virtual banks aim to provide quick and secure access to funds for those in need.
In conclusion, the partnership between Lighthub Asset and WeLab represents a promising opportunity to revolutionize the digital banking landscape in Thailand. By leveraging their expertise, technology, and customer-centric approach, the consortium aims to make a significant impact on financial inclusion and empower individuals and businesses to achieve their financial goals.
