KakaoBank (KRX:323410) and Thailand's SCB X Public Company (BKK:SCB) signed a joint venture agreement to establish a virtual bank in Thailand, the bank said in a Wednesday release.
The virtual bank will offer banking services exclusively via digital platforms without physical branches. KakaoBank will initially acquire a 10% stake in the joint venture and plans to raise it to 24.5%, according to the release.
The virtual bank aims to begin operations after completing system development and securing final approval from the Bank of Thailand, the release said.
Shares of KakaoBank and SCB X Public Company fell nearly 3% at market close.