Dr. Arak Sutivong, Deputy Chief Executive Officer and Chief Financial Officer of SCB X Public Company Limited (SET: SCB or SCBX), spoke at the 50th Anniversary Seminar of Prachachat news under the special panel theme “The Successor: Bridging Generations for the Future.” Dr. Arak revealed updates on the establishment of the Virtual Bank under the name “Bank X,” stating that the company is currently developing its system and preparing in various aspects, aiming to launch services by the end of this year. However, further time is required, as SCBX prioritizes creating a stable, secure, and sustainable business system over a rushed launch aimed solely at time-based competition.
The company views that Virtual Bank should not merely be a digital banking service migrated onto an online platform in its existing form. Instead, it must be distinctly different from the current digital banking services in terms of user experience, service models, and reaching new customer segments (underserved) that traditional banks have not yet accessed. Therefore, time is needed to design the business model and to develop the technological infrastructure that truly serves the objectives of a Virtual Bank.
Dr. Arak said that SCBX has maintained ongoing discussions with the Bank of Thailand (BOT) regarding all operational plans, including system development, system testing, and the implementation timeline. BOT acknowledges the details and complexities of all procedures as well as the potential for delays at certain stages of development, to ensure that the system is fully ready before launch.
Regarding competition, Dr. Arak noted that being the first player in a market could offer advantages if it is a new kind of service. However, in the banking industry where there are already many players, the addition of another bank will not matter unless it can create clear differentiation for its customers. Thus, even if SCBX launches later than others, the company places higher importance on creating truly customer-centric services and delivering a superior experience.
“What matters is not who launches first or last, but who can genuinely deliver new value to customers. If, in the end, it is just another bank offering the same old services, it might be insignificant to consumers,” Dr. Arak said.
Regarding target groups, SCBX positions its Virtual Bank to focus on customers who are underserved or excluded from traditional financial services. This is a large market with significant financial gaps remaining. SCBX will utilize digital technology and new credit assessment methods to analyze customer data, thus opening more opportunities for access to credit and financial services.
Such credit evaluation methods will differ from traditional banks, which usually consider mainly regular income or credit bureau data. The Virtual Bank will incorporate alternative data or other financial behaviors into its analysis, which can see the potential of customers who would otherwise be deemed as lacking sufficient credit history or considered too high-risk by conventional banks.
Dr. Arak stated that SCBX does not view Virtual Bank as competing for the same market. The Financial Inclusion segment is still substantially large, with many people unable to fully access financial services. Therefore, having multiple players in the market to address these customers’ needs will expand the overall access to financial services.
As for the shareholding structure, SCBX will initially hold a 90% stake in the Virtual Bank, while Kakao Bank from South Korea will hold 10%. However, Dr. Arak noted that shareholding ratios alone do not reflect the entire picture of the collaboration, as there are partnership agreements and commercial agreements specifying the roles, responsibilities, and returns for each party.
Each partner will contribute based on their area of expertise and will be rewarded according to their contribution to the project, ensuring the collaboration’s sustainability in the long term. This is not simply a symbolic alliance, but a true partnership where all parties are genuinely involved in building the business.
Dr. Arak emphasized that the core of SCBX’s Virtual Bank is not about speed of launch, but rather building a stable, differentiated system that can help previously underserved customers gain authentic access to the financial system, which is the key objective in developing the Virtual Bank over the long term.
