Thailand to Join Digital Bank Race in Southeast Asia

The Bank of Thailand (BOT) is considering issuing guidelines for virtual banks in the country in order to keep up with neighbouring Malaysia and Singapore, which have already begun to implement their plans.

In line with this, the BOT is seeking public input on its plans for “Repositioning Thailand’s Financial Sector for a Sustainable Digital Economy” by 28 February 2022.

To promote innovation and better financial services, the regulator wants to encourage healthy competition between emerging fintech businesses and established banks.

To help with this, BOT stated it will expand the “business scope and boost flexibility” of the existing banks. It will also aim to create an open infrastructure that will allow more players to access critical infrastructure at fair and reasonable prices.

The payment system, retail central bank digital currency, and credit guarantee mechanism suitable for various funding needs are all part of the fundamental infrastructure. BOT will also focus on open data in order to make it easier for customers to contribute their information as part of open banking initiatives.