BANGKOK, (NNT) – The growth of Financial Technology in Thailand is said to be among the fastest in ASEAN. The World Bank meanwhile, has suggested the government reduce inequalities in access to capital to enable variations in Fintech development to emerge.
The World Bank’s senior country economist for Thailand, Kiatipong Ariyapruchya has revealed the World Bank’s analysis of financial technology or Fintech, saying that Thailand is regarded as an ASEAN country with rapid Fintech development, with 140 Fintech companies registered, while about half of them are new companies.
About 43 percent of Fintech companies in Thailand are focused on the development of digital transaction services, however most of these companies are under the supervision of large banks which also develop their own digital transactions system or purchase one from another company, which discourages independent development by Fintech companies, and inhibits development of their full potential.
The government has however, created legal frameworks and establishd organizations to support the expansion and diversity of digital financial service providers with clear development guidelines. The Thai public has however limited capacity to access capital based on household income levels; this is despite the high volume of digital transaction usage compared to the rest of the world.
The government needs to address this unequal access to capital, which would help the country develop a modern, inclusive, and secure economic system.
The government should promote the competitiveness of Fintech connectivity, cooperation between traditional banks and Fintech companies, and create closer cooperation between regulating agencies to prevent redundancies, which might obstruct the country’s Fintech development.