Thailand’s robust initiatives towards sustainable digital economy

The financial services industry in Thailand remains resilient with high capital buffers and liquidity to mitigate the risks of economic uncertainty as the country recovers from the aftershocks of the COVID-19 pandemic and geopolitical crisis. The Bank of Thailand (BOT) has been proactively facilitating innovations that support the digital transformation of banks and financial institutions (FIs) in Thailand. The central bank has set strategic directions to facilitate a smooth transition of country’s financial sector towards a sustainable digital economy. These include leveraging technology and data to drive innovation and ensure resiliency. BOT also plans to issue new policy guidelines for the virtual bank licensing and open banking later this year. During the COVID-19 pandemic, the accelerated pace of digitisation within the financial services industry in Thailand has highlighted gaps in existing digital journeys. The growth of open banking and digital ecosystems in institutions has widened service capabilities to meet the changing demands of the customers. The industry has observed an increase in contactless, partnerships with non-traditional players, adoption of internet of things (IoT) and smart devices, use of blockchain, artificial intelligence (AI) and analytics. The industry players are also putting in efforts to support underserved consumer segments as well as small and medium-sized enterprises (SMEs). To stay relevant to evolving consumer needs and thrive in the new marketplace, traditional players follow the footsteps of digital pioneers who have implemented holistic transformation by upgrading their technology stack, re-inventing their corporate culture, and adopting more agile and customer-centric operating models. The incumbents also need to build successful API powered digital ecosystems through partnerships and modern cloud first technologies for agility and efficiency. The Asian Banker Finance Thailand is the leading annual event for fostering sustainable innovation, not only among financial institutions but also with disruptors and related players. The discussions during the event will help update leaders and decision-makers with the latest ideas from key influencers on transformational issues shaping the financial services industry.