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FinTech Industry in Thailand holds Unlimited Prospects

FinTech Industry in Thailand holds Unlimited Prospects

In Southeast Asia, technological innovation
is rapidly changing the financial services industry. Enabling factors such as
steady economic growth, a large population and youthful demographics, a rapidly
expanding internet and smartphone penetration, and the proactive stance of a
number of national regulators have led investors to direct approximately US$1
billion
into the financial technology (FinTech) sector since 2013.

Thailand in particular is well-positioned
to capitalize on the new developments in FinTech. The country has seen rapid
growth in mobile and internet penetration, with internet access increasing from
67
percent
of the population in 2017 to 84
percent
a year later.

Thailand also has one of the strongest
regional track records in improving access to finance, with 97 percent of the
population either banked or with access to formal financial services offered by
other providers. More fundamentally, perhaps, Thailand has the largest number
of software and app developers among the Association of Southeast Asian Nations
(ASEAN).

Recognizing the promise of FinTech
innovations for access to capital and financial inclusion more broadly, the
Bank of Thailand (BOT) has taken a leading role in creating an enabling
environment for FinTech expansion in Thailand. This work has included organizing
the 2018 Bangkok FinTech Fair, advancing a National e-Payments Master Plan, and
establishing a FinTech regulatory sandbox.

Given that social commerce has been booming
in Thailand at the moment, Fintech companies are coming up with even more innovative
technology that not only benefits the financial sector but also the social
commerce sector.

As Thai consumer’s behaviour enters the
digital savvy era, FinTech start-ups are able to innovate and come up with new
financial services that will better serve consumers or even solve existing
problems. For instance, nowadays most online vendors do not own an official
payment system for their customers. Most of the time, online purchases in
Thailand are completed via contacting merchants via instant messaging
applications such as Facebook Messenger and LINE.

Afterward, consumers would have to leave
the chat application to transfer money then return to the application to send
the proof of payment. As a result, the process still requires several
procedures and consumes time. This is a gap for FinTech to innovate or offer
new services as a solution to enhance the payment services or best seek the
system that will best fit consumers’ way of life.

Blockchain is a type of technology that has
a heavy influence over the FinTech industry. A blockchain is a digitized,
decentralized, public ledger of
all cryptocurrency transactions.
Constantly growing as ‘completed’ blocks (the
most recent transactions) are recorded and added to it in chronological order,
it allows market participants to keep track of digital currency transactions
without central recordkeeping, thus making communication easier.

The prospects of Blockchain does not stop at FinTech, but also extends to other
businesses such as the tourism industry, organizations, or social commerce
which is the use of social media for increasing efficient trade. Thailand has
begun to adopt Blockchain in different industries such as finance, energy,
retail, and the government.

The Governor of the Bank of Thailand,
Dr. Veerathai
Santiprabhob
, announced that Thailand plans to use blockchain
technology to improve existing banking applications. The technology is gaining
momentum in Asia. Santiprabhob made the plan public at the Nomura Investment
Forum in Singapore.

A new approach to interbank settlements is
also being developed by the Bank of Thailand (BoT). BoT is toying with an idea
to utilize commercial Central bank digital currency (CBDC) to explore
applications and implications for operation. The aim is to develop a faster and
cost-efficient transfer and validation system by removing third parties that
exist in such operations today.

The easy acceptance of blockchain technology
by Thailand does not mean that they are changing their stance on
cryptocurrencies. All businesses dealing with cryptocurrencies should register
with Thailand’s Security Exchange Commission within 90 days.

Thailand remains optimistic about the
potential growth of their Fintech industry as it is in line with the Thai
Government’s Smart Nation objectives.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and consulting services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,800 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity, and service. For more information, visit www.ibm.com