InfoQuest (September 21, 2020) - Bank of Thailand (BoT) governor Veerathai Santiprabhob said at the Bangkok FinTech Fair 2020 that BoT had always highlighted the investment promotion in digital technology within financial system, to relieve fund obligations and operational risks of financial and business sectors for better services.
During the COVID-19 lockdown, digital technology enabled financial businesses at home, the number of people handling such businesses through digital means increased significantly, and the same was true in other businesses that survived amid digital technology.
In terms of finance, BoT started its digital services from Prompay with 55.1 million users, increasing business volume and up to 20 million daily transactions. Furthermore, QR code saw common use in financial services and higher popularity with 6 million merchants registered.
In addition, Project Inthanon facilitated domestic inter-bank transfers, digitizing the deposits of banks and other financial institutions in BoT and becoming the Central Bank Digital Currency as an intermediary for cross-industry services. Today, the project has been expanded to cooperate with partner banks in Hong Kong and used in Pier-to-Pier transactions.
Commercial banks also applied digital technology in their services to enterprises and small customers, such as National Digital ID (NDID), Bio Metrix and a credit platform of personal credit.
"Joint efforts between Thai banks, banking sectors, governments and enterprises still work for more extensive application of digital technology and a Digital Economy society." Veerathai said.
BoT was scheduled to establish a financial and commercial infrastructure system, properly ease the capital burden and operational risks for banks, provide data support on E-invoice and E-Factoring, and raise collection efficiency. At present, relevant systems are being upgraded, and it may take another year and a half before popularization of the above services. Veerathai added.
Digital Footprint as another project that the Bank of Thailand attaches great importance to is accessible for commercial banks to collect data and use Payment Data in Digital Footprint. Customers may also receive services that are more in line with their needs.
NDID digital application in identity authentication is currently only used when commercial banks render services. However, BoT may make NDID a digital ID card to be widely applied, broaden the channels for applying NDID and replace ID cards with NDID as an identification means in businesses and transactions. Next, the NDID will be promoted in securities trading and government services.
In Project Inthanon, BoT may continue its promotion of applying central bank digital cash in the supply chain system of larger financial services and in the inter-enterprise payment system for more convenient and safer payment.
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