Virtual Banking Services

70 million new virtual bank accounts in Indonesia. Over 30% of Hong Kong’s population fully online. A single virtual bank in Brazil valued at $70B. The digital banking revolution is here—and Thailand is the next destination! The Lightnet-WeLab consortium, vying for a virtual banking license in Thailand, aims to bring true financial inclusion to the country’s underserved—particularly the 52.7% labor force in the informal economy with an estimated informal debt of THB16.3 trillion. Why Virtual Banks Matter - In Hong Kong, eight virtual banks licensed in 2019 achieved a 77% CAGR in depositors and 147% CAGR in loans. - Indonesia now boasts over 70 million accounts opened across 15 virtual banks, with loan disbursements rising by 22%. - Brazil’s NuBank, the largest virtual bank worldwide, is valued at around THB2.4 trillion, dwarfing the combined market cap of Thailand’s four biggest banks. What’s Different for Thailand? Purpose-Built Products Example: Bank Saqu in Indonesia introduced “saving pockets” in a single account, achieving a 60% monthly active rate and onboarding nearly 2 million customers - 40% of whom are informal workers. Similar localized offerings could transform Thailand’s retail and MSME segments within 12 months if a license is granted. Responsible Credit WeLab has issued over $15B (THB512B) in loans with AI-driven underwriting, beating Hong Kong’s banking delinquency average by six times. By leveraging multi-dimensional data (even drone imagery for agricultural borrowers), the consortium can extend credit where traditional banks can’t. Ecosystem Synergy Tapping into Lightnet’s 46 million users across agriculture, F&B, and e-commerce plus 150,000 physical touchpoints will close the access gap and spark healthy competition in Thailand’s banking market.

Building Blocks For A Digital Bank 💡 The first key element is to find out how you wish to be regulated. Most greenfield banks built by existing banks will rely on the umbrella of their existing parent's banking license. However, new entrants in the sector will need to be regulated themselves to play and compete. A multitude of options are available: 1️⃣ The Banking License If you want to become a fully licensed bank, you need a banking license. The banking license is the almighty of all licenses, basically allowing you to provide all the services you typically expect from a bank (i.e. current accounts, overdraft) and extend to more advanced activities like granting loans or mortgages. 2️⃣ The E-money License Regulators have made it easier to launch new banking-like services by creating a new kind of license – The E-money license. The EMI allow you to store money on an electronic device or remotely on a server, effectively creating a 'digital account' or an 'e-wallet'. These e-wallets can support all types of payment services-like features - which looks and feels almost exactly like a traditional account offered by your bank. Now Let's Build Your Platform... 🚀 The next step is to assemble your platform, which will constitute the backbone of your architecture. A platform is essentially made of 3 layers: 👨💻 Starting with The Core The first phase and most important building block to a digital bank is the the Core Banking. The Core Banking is the heart of a bank, basically the engine behind the creation of accounts, balances, transactions, loans, interest rates, journal entries along with the storage of client data, receipts and other reporting tools. New cloud-based next providers have recently emerged, with stronger focus on serving new digital services at a much more affordable installation price. Next generation Core Banking specialists (like Mambu, Thought Machine, and Skaleet) are usually based on a monthly subscription fee model based on utilization instead of heavy project costs. 👨🔧 Complemented by a Middle & Front-End Another crucial part of the infrastructure is the middleware, which resides on top of your back-end or Core Banking infrastructure as an add-on, and acting as a system orchestrator connecting all layers together, eventually reducing the need to involve your Core Banking in every single customer interaction. Additionally, such platforms allow you to either build you very own user experience (or front-end) or use their white-label front-end solutions. Once again, considering to leverage an existing front-end applications from an existing vendor may lowest your risk and come down to a most cost-effective solution, at least for your initial launch. Sources: Nickolas B. x FinTech Insights - https://bit.ly/46y9tVt Germain Bahri - https://bit.ly/401NvI2 #Fintech #Banking #DigitalBanking #Neobanks #OpenBanking #OpenAPIs #BaaS #FinancialServices #CoreBanking #CreditCards #Payments #Loans #KYC #AML #Wallets

🚀Traditional Bank to Digital Bank With traditional customer journey includes traveling to branches to talk with a customer service representative, assembling pages of paper documents to meet KYC requirements, & then waiting for days to receive decisions I am blessed with actual implementation in and out of banking while making Digital Bank from Its Traditional behavior ;  Definitely, The transformation from traditional banking to digital banking involves numerous changes across various aspects of the banking industry Let's understand ? 💡 Technological Advancements: Rapid advancements in technology, such as the internet, mobile devices, cloud computing, and data analytics, have paved the way for digital banking 💡 Changing Customer Expectations:Customers now expect convenient and on-demand banking services 24/7 availability, user-friendly interfaces, and personalized experiences 💡Platform banking - Evolution of Platforms with-in Bank and Outside of banking e.g. adoption of Banking as Service , Public Digital Infrastructure is Boost 💡Integration of Financial Services: Digital banking has facilitated the integration of various financial services into a single platform including instant a/c opening 💡 Payments & Transactions: Digital banking enables fast and secure electronic payments and transactions. 💡Personalized Services: Digital banking leverages customer data and analytics to offer personalized financial services 💡Security & Fraud Prevention: Digital banking implements robust security measures to protect customer data and transactions 💡FinTech Integration: The digital banking transformation involves collaboration with financial technology (FinTech) companies 💡Customer Support: Digital banking provides multiple channels for customer support, including online chatbots, virtual assistants, and video conferencing. 💡Data Analytics: The transition to digital banking generates vast amounts of customer data. 💡 Regulatory Compliance: Digital banking requires adherence to evolving regulatory frameworks related to cybersecurity, data privacy, anti-money laundering, and consumer protection. 💡 Infra Transformation: Movement of Infra from Data Center to So called Cloud-centric Data center with better mechanism to manage and monitor Infra Banks are Changing and It's important to note that the extent and pace of digital banking transformation may vary across different regions and institutions, as customer preferences, technological infrastructure, and regulatory environments can influence the speed of adoption Transformation is , the change is with leadership, Employees , Process Automation, Technology Adoption, Architecture Change, regulatory compliance, Support Systems, Partners, and ultimately for everchanging Customer Experience! Do you have suggestions, Please comment