Fintech: Financial technology that is already changing the way of life of Thai people

Have you ever noticed how much our payment methods have changed over the past ten years? QR Code withdrawals instead of going to the bank, carrying cash or cards—all of these come from the development of (Fintech), financial technology, which is no longer new but has become part of our daily lives.

Financial Technology Is Not Just a Bright Idea

Now, if asked what Fintech truly is, the word Fintech comes from the combination of the words Financial (Finance) and Technology (Technology), meaning financial technology. It involves using digital tools to conduct financial transactions to make everything easier.

But in reality, Fintech systems are not new. If you’ve ever withdrawn money from an ATM or used a credit card in the past, that was already Fintech at work.

Fintech Comes in Many Forms, Not Just Money Transfers

Talking about the use of financial technology in daily life in Thailand, it’s more diverse than you might think. It’s divided into approximately 7 main categories:

Banking Technology: Systems that bring banks closer to us through Mobile Banking, eliminating the need to visit branches for transfers or bill payments.

Crowdfunding: Ordinary people can invest to help small businesses or startups get funding in exchange for a share or interest.

Cryptocurrency: Digital coins like Bitcoin that allow transactions without going through a bank.

Payment Technology: E-wallet systems like True Money Wallet that enable people to pay via apps instead of cash.

Enterprise Financial Software: Online accounting programs for entrepreneurs to manage accounts and receipts easily.

Investment Management: Apps that let you buy and sell stocks, funds, or cryptocurrencies from home.

Insurance Technology: Buying insurance online without the complicated paperwork of the past.

Benefits and Challenges: Fintech Is a Double-Edged Sword

The benefits are clear: lower fees, time savings, cost reduction, enabling startups and SMEs to grow faster, and easier access to financial markets for the general public.

However, there are also issues. Easing lending restrictions for everyone could lead to economic problems like inflation. Data privacy and security become major concerns, with increased risks of hacking accounts or online fraud.

Successful Fintech Businesses in Thailand

With these developments, many such businesses have emerged in Thailand, and some startups have achieved real success:

Bitkub is the most popular platform for buying and selling cryptocurrencies in Thailand, with a rapid increase in users over the past year.

Finnomena is an investment platform that helps people invest in stocks and funds, offering easy financial planning advice.

Flow Account is an online accounting software that makes managing accounts worry-free, even for those without accounting knowledge.

Obstacles to Fintech Growth in Thailand

Although we see growth in Fintech, it’s not as fast as it could be, due to several barriers:

Legal Issues: Thailand still lacks clear and sufficient laws to support Fintech development, especially regarding issuing VISAs to foreign investors, which puts us behind other countries.

Investment Challenges: Thai banks are reluctant to lend to high-risk startups, making it difficult for new businesses to secure funding.

Talent Shortage: There’s a need for specialists with expertise in this field, but Thailand still lacks such personnel. Additionally, some segments of the population are uncomfortable using digital systems.

What Does the Future Hold for Fintech in Thailand?

Analysis suggests that Fintech in Thailand will not experience rapid growth initially, mainly due to the problems and obstacles mentioned.

However, this does not mean there will be no change. If the government and financial institutions recognize the importance of financial innovation for the economy and open up to experts and foreign investors, and if supportive laws are enacted, the situation could change.

Once the government and private sector understand the significance of Fintech, Thailand’s economy is likely to grow alongside this development, with startups and the general public benefiting more from financial technology.