Mr. Setthaput Suthiwatnarueput The Governor of the Bank of Thailand (BoT) gave a special speech at THE STAN DARD ECONOMIC FORUM 2023 on the topic of Thailand Financial Landscape 2024, saying that the essential and important thing of Thailand is Resilience, which is about durability. and flexibility That the Thai economy can fall down but must get back up quickly. Which can be done, stability cannot be avoided. The presence of various bumpers To strengthen both the private financial position Household and government Setting aside space for making policies or policy space regarding finance and finance. Having options to deal with crisis situations And finally, new growth must be created.
In the past, the BoT has adjusted the financial landscape, issuing the Financial Landscape under the principles of “3 Open” including Open Infrastructure, Open Data, and Open Competition. The financial landscape creates balance. To create financial innovations that benefit Thailand’s financial ecosystem. Create balance while taking care of risks. It is necessary to emphasize flexibility. New financial innovations must be used. along with taking care of risks Focus on flexibility You have to look at what is considered to be a lot of risk, which is a lot of supervision, and what is not a lot of risk. It’s flexible.
Mr. Setthaput further said that such operations will be done by the BoT in 3D or 3 snapshots. The first issue is payments (payments) to reduce the cost of issuing Thai banknotes. There are 2.1 trillion baht of circulating bonds in the system, which has costs of approximately 50 billion baht per year. In the past, Thai people have increasingly used electronic money transfers (Digital Payment). Most recently, 76.3 million people registered with PromptPay, with an average of 56.4 million transactions per day, an average of 500 times per person per year. It has increased more than 5 times in the past 5 years and is number 1 in the use of Mobile Banking in the world.
Want to see more about the use of digital. The proportion of cash use is very high. In the past 5 years, cash was used from 68% down to 56%, while in Singapore it went from 40% to 19%. But all of that cash has not disappeared. The role of cash still exists in remote areas, including increasing use of small denomination notes such as 20 baht and promoting the use of cross-border payment systems, such as connecting PayNow with Singapore. It is the first pair in the world. The transfer fee is reduced and the transfer speed is from 1-2 days to 1-2 minutes.”
The Governor of the BoT went on to discuss what needs to be done in the second issue: What should be done to make the Thai financial system transition towards sustainability? The financial sector must turn towards more sustainability. And there must be products that facilitate change in order to create a sustainable business. The BoT has issued rules and regulations and issued TAXONOMY as a central criterion. It’s like a ruler. Can this business really go green? But what is missing is Program Products: The BoT is currently discussing with commercial banks to create products such as loans to adjust energy use processes, etc.
While the third topic is Open Data for Consumer Empowerment or the disclosure of consumer information in the financial system. If consumers agree to disclose their information to various service providers. through digital channels For example, from the past you had to use paper when applying for a loan. If using information online Digital footprint, such as filing taxes online Pay water and electricity bills Buying things online will be easier, which we are trying to make happen soon. It is expected to be revealed on November 30th.
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