Thailand`s largest bank by revenue, Kasikornbank Pcl, has revealed its plans to launch a new FinTech platform by the end of the year. The aim is fa
Thailand`s largest bank by revenue, Kasikornbank Pcl, has revealed its plans to launch a new FinTech platform by the end of the year.
The aim is faster, easier and lower-cost online banking transactions, said Kattiya Indaravijaya, one of four presidents at the Bangkok-based company, in an interview with Bloomberg.
As financial technology start-ups disrupt traditional banking models, Kasikornbank and its competitors including Siam Commercial Bank Pcl turn their attention towards new investments in digital banking systems, explained Bloomberg.
“There are a lot of parties talking to us right now. We can partner with fintechs. We have them provide a product to us and we provide it to the customer. There’s an opportunity for us to provide the service to the customer at a lower price”, commented Indaravijaya.
According to statistics conducted by the Bank of Thailand, the value of transactions via mobile and internet banking in Thailand has increased with more than a quarter to 3,2 trillion baht ($91 billion) in six months through September 2016.
Last month Thailand introduced a government-backed national digital-payment system that offers much smaller financial fees than other banks. The PromptPay service, as it is called, may pressure lender`s fee income in the short term, said UOB Kay Hian Securities (Thailand) Pcl before Bloomberg.
The risk PrompPay poses depends partly on uptake, which is expected to be gradual, said Kattiya Indaravijaya.
“Banking is now facing new challenges.”, she added. “We have to think about a new strategy to be relevant to our customers when their behavior changes.”
As a whole, blockchain adaptation in Thailand is expected to be widely seen in a number of industry sectors including finance.
Speaking to Bangkok Post (bangkokpost.com), the blockchain specialist Bhume Bhumiratana explained that blockchain technology is to be widely seen in Thailand by 2018.
While the country is behind some global peers such as Singapore and the UK, it is still among the technology leaders in Asia, as Bangkok Post wrote.