NationThailand-Apr 22
The Bank of Thailand (BOT) is championing a bold strategy to foster financial inclusion across ASEAN by embracing open finance principles, a top official declared on Tuesday at the Money20/20 Asia. BOT deputy governor Roong Mallikamas outlined the central bank’s “3 Opens” framework – focusing on open competition, open infrastructure, and open data – as the key to unlocking digital finance opportunities for the region’s underserved populations. Her address was given during her keynote presentation on the critical transition “From Open Finance to an Inclusive Digital Society” in the ASEAN region. Highlighting the immense potential of ASEAN’s burgeoning digital economy, projected to surpass $360 billion by 2025, Roong underscored the persistent challenge of financial exclusion. Roong explained that these barriers often stem from limited data for credit assessment, a lack of transparency, and poor system interoperability, driving up customer acquisition costs for traditional banks. She argued that fintech firms, with their agility and data-centric approaches, are uniquely positioned to bridge this gap. Drawing on Thailand’s experience, Roong detailed the evolution of their policy objectives, starting with the successful implementation of PromptPay, the national real-time payment system. Initially focused on inclusion and stability, the BOT’s strategy has shifted towards prioritizing competition and efficiency. The BOT is now moving towards allowing non-banks to play a greater role, enhancing access for underserved groups. Roong believes this framework will allow all players – banks, fintechs, and virtual banks – to operate at their full potential.
Recognising the risks associated with new technologies, Roong stressed the importance of a collaborative regulatory approach. Read more at:
https://www.nationthailand.com/business/banking-finance/40049097
