KakaoBank to Lead App Development for Thailand’s BankX Virtual Bank, Set Up New Base in Mongolia

KakaoBank will lead overall development of the mobile app for Thailand’s virtual bank BankX, which is set to begin operations in the first half of next year. The company is also accelerating its overseas push by choosing Mongolia as a new base in Southeast Asia. It also plans to flesh out an “AI-native bank” strategy built around hyper-personalized AI services.

KakaoBank CEO Yun Ho-young outlined the plan at a news conference Tuesday at a hotel in Seoul’s Yeouido district.

“Using AI technology, we will provide a financial secretary optimized for everyone, and expand our stage worldwide to write the history of financial innovation,” Yun said.

KakaoBank is currently working with Indonesia’s Superbank to apply its digital banking operating know-how locally. Superbank listed on the Indonesia Stock Exchange late last year and has become the country’s top digital bank by market capitalization.

In Thailand, KakaoBank is preparing to launch virtual bank operations in the first half of next year through BankX, a joint venture set up with the SCBX Group. KakaoBank plans to bring to Thailand signature products that have succeeded at home, including its “26-week savings” and “group account” offerings. It said it will directly lead mobile app development, aiming to export its capability to build a digital banking platform rather than provide advice alone.

KakaoBank also selected Mongolia as a new overseas base. Working with local financial institutions, it plans to share know-how behind its credit scoring system, “KakaoBank Score,” which uses nonfinancial data to assess creditworthiness.

The company also presented an AI-based roadmap for its app. In the second quarter, it plans to add an in-app “investment” tab to help customers compare and invest in a range of financial products using AI. In the third quarter, it plans to apply AI to its “payments home” feature and roll out a “personalized spending management service” that proactively suggests ways to manage expenses based on customers’ payment data.

KakaoBank said it also plans to enter the retirement pension market and expand into a “lifetime asset management” service spanning customers from their 20s and 30s to seniors. The goal is to evolve into a “financial secretary” platform that recommends needed services first, rather than simply offering more functions.

“As a financial app adds more functions, customers face the ‘paradox of expansion,’ where it becomes harder to find what they need,” Yun said. “The future KakaoBank is pursuing is one where AI identifies and solves complex financial problems first.”