Kakao Bank Secures Approval for Thailand’s First Digital Banking License

In a significant development, Kakao Bank has received final approval from Thailand’s Ministry of Finance to establish the country’s first digital bank. The licence was granted after thorough evaluations by several central banks, with similar approvals issued to ACM Holding Company and a consortium led by state-run Krung Thai Bank.

The authorities assessed business models, digital capabilities, and potential to enhance financial inclusion, particularly for underserved consumers and small businesses. This approval allows Kakao Bank to continue focusing on meeting the needs of its clients while maintaining compliance with local regulatory requirements.

Key Points

• The central bank expects digital lenders to improve customer experience, increase efficiency, and promote healthy competition through better pricing and development.
• Kakao Bank is required to establish a corporate entity in the third quarter and commence operations within one year. Services are expected to begin in the second half of 2026.

In addition, Kakao Bank aims to serve as a gateway for Korean banks and companies seeking entry into the Thai market by providing optimised and secure digital financial services to businesses and individuals alike.