Fintech in Thailand is already disrupting the conventional responsibilities assumed by banks and financial services companies for hundreds of years. These traditional financial institutions have been caught off guard and are now trying to build their own apps to catch up with market leaders.
Fintech is quickly becoming a common feature of the global financial system. Thai and ASEAN startups wanted to establish their own fintech business models based on new methods of lending, advice, transfer and insurance.
Many people outside of Thailand are surprised to learn that Thailand is now a hub for fintech and, therefore, for all the big guys. financial software development company. Without attracting too much attention from around the world, Thailand has generated a wide array of inventive fintechs, from localized versions of international ideas tailored to the particular local context, or original solutions that foreigners will find it difficult to come up with. understand.
Thailand has become a FinTech hotspot
Thailand’s Fintech sector includes companies that deal with digital payments, blockchain, and distributed ledger (DLT) technologies. Fintechs include financial comparison tools, insurance technologies, retail investment platforms, peer-to-peer (P2P) lending, personal finance solutions, business tools, crowdfunding services, financial education, remittance payment services and financial infrastructure providers, to name a few. .
According to recent statistics, Thailand has emerged as a FinTech hotspot, with equity increasing at a CAGR of 55%. In order to develop their operations in the fintech and banking sectors, the digital challenger banks in South East Asia have used various business strategies. According to a new report from Singapore Fintech Association, they have increased three times (over 300%) over the past five years (SFA).
With the resumption of investment activities in Thailand and a more progressive stance on blockchain and cryptocurrencies, it will only be a matter of time before the young Thai sector becomes a serious competitor. The Bank of Thailand, the country’s central bank, has launched a number of measures in recent years to encourage the growth of FinTechs in the country, including the Bangkok FinTech Fair 2018, the implementation of the National e-Payment Master Plan, launching a sandbox, and more.
Despite the fact that the Thai fintech sector is still in its infancy, the government has launched measures to encourage the establishment of contemporary financial services, which have become essential in the wake of the COVID-19 outbreak. The Bank of Thailand and the UK government signed a MoU focused on FinTech in August 2020, which aims to stimulate sustainable economic growth. According to studies, SMEs in Thailand and other Southeast Asian countries still face a $ 300 billion funding gap, which is critical as they account for 42% of the region’s overall GDP.
Thailand’s Fintech sector has experienced substantial growth in recent years. There are now over 100 fintech companies in the country, and the number is growing as new opportunities emerge for each financial software development company. Here are some of the market leaders.
Kredivo is the brainchild of FinAccel, the Indonesian firm formerly known for Lime, a budget management tool. It is a credit provider that offers loans online with one month interest free loan and 2.95% monthly repayment options. It was established in 2015 and has total funding of $ 30 million.
It is a payment management tool that allows users to send money to third-party bank accounts, save consumers’ card data, and refund money to customers. It is a payment management system for SMEs that simplifies the transfer of funds to various bank accounts.
Fintech encompasses a number of related industries, including insurtech. Claim Di is a smartphone application that allows you to purchase car insurance. If the other motorist is also a Claim Di subscription, an app subscriber would shake their phone near the other driver’s phone in the event of a car accident. The insurance companies of the two drivers will then issue a claim report. The drivers are not required to wait for the arrival of the surveyors at the scene of the accident.
A robotics consultancy that provides investment information and advice was founded in 2015 and has raised a total of $ 3.2 million in funding. The organization was formed by some of Thailand’s most renowned financial gurus with the aim of providing information on investment planning and personal finance. Jessada Sookdhis, CEO of Finnomena, is the President of the Thai Fintech Association and a seasoned fund manager with experience at UOB Asset Management, Krungsri Asset Management and others. Finnomena has so far raised $ 3.2 million in funding.
Masii allows customers to evaluate multiple auto insurance and credit card options to find out which one is best for them. This site has been identified as the best place for expats living in Thailand to compare health, car and credit card costs and coverage.
It was established in 2015 and has total funding of $ 1.1 million. T2P Co. Ltd. developed Deep Pocket, a mobile wallet service provider application. Android and iOS users can enter their credit or debit card information into the app, then use their phones to pay for products and services.
It is a cloud-based accounting tool that was created primarily to help SMEs manage their expenses. The user creates an account and uploads photographs of receipts and invoices. In addition, the app creates and issues professional looking invoices. He can work with partners and track payments. Since its inception in 2014, it has received several accolades and has raised a total of $ 1.15 million in investment.
It was established in 2013 and has total funding of US $ 70,000. Piggipo was designed for people who have a lot of credit cards. It is a credit card management program that prevents credit card abuse by recording expenses and payment due dates for each credit card entered. It generates infographics on user spending habits, tracks and records transaction details.
Thailand has been a pioneer in adopting new technologies to strengthen its competitiveness. Thai financial institutions have taken a proactive approach to improve existing systems, add stronger consumer protections, and create new systems. Regulators have acted swiftly to fill legal and regulatory loopholes created by changes in local and global operations in the FinTech industry.
Thailand’s main growth strategy is to attract investment in high value-added companies such as blockchain, artificial intelligence (AI), big data, robotics, cloud computing and machine learning in order to develop and expand the country’s capacity for high added value. added industries.
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Authors biography :
Jason Camaya loves to take his camera wherever he goes. When not clicking pictures, Jason enjoys writing, playing video games, and procrastinating. He writes for https://appinventiv.com/ for some time now, and
talented as he is, he offers stiff competition to his fellow writers. It has been featured on numerous websites and blogs.