Financial technology changes Thai people's lives: Variables that drive the economy in the future

Whether it is borrowing, withdrawing money, transferring funds, or even investing, everything nowadays can be done through a few taps on a mobile screen. This is the scope of Fintech - Financial Technology, which has become a part of Thai people’s daily lives.

What is Fintech? Why Has It Become a Trend?

Fintech (Fintech) results from the combination of Financial (Finance) and Technology (Technology). This means applying digital technology to solve problems of traditional financial systems, making financial transactions easier, faster, and more cost-effective.

In the past, we had to go to the bank for various transactions, which took time, increased expenses, and involved cumbersome paperwork. Now, simply scanning a QR code transfers money instantly to the recipient. No cash needed, no paper signatures required. It also saves on fees.

Financial technology didn’t just emerge in recent years; it has been around since the era of ATM cards and credit card payments. However, continuous development has modernized it and adapted it to human usage, leading Thailand into what could be called the “Digital Money Era.”

How Many Types of Financial Technology Are There?

Fintech is not a single system but encompasses various forms depending on the purpose of use. It can be divided into 7 major types as follows:

Banking Technology - Incorporating technology into banking systems, allowing us to perform financial transactions via mobile without visiting branches, paying bills, transferring funds between banks for free. Even paying water and electricity bills can be done through just an app.

Crowdfunding - Raising funds from the general public, where individual investors contribute small amounts via a third-party platform. This system helps SMEs and startups to access funding more easily without relying solely on banks.

Cryptocurrency - Digital currencies operating on a decentralized system without banks or intermediaries. Transactions are conducted directly through blockchain technology. This has garnered significant interest today.

Payment Technology - Payment systems using technologies like QR codes or E-wallets such as TrueMoney Wallet, widely used by Thais. Users do not need cash but can pay through digital platforms.

Enterprise Financial Software - Online accounting systems that help entrepreneurs manage their accounts more easily, issuing receipts, quotes, and paying employees without paper documents.

Investment Management - Investment apps for stocks, mutual funds, or digital currencies. Users can open accounts and trade instantly.

Insurance Technology - Buying insurance online, where the system automatically calculates premiums, analyzes risks, and issues policies without the need for traditional paperwork.

Successful Fintech Businesses in Thailand

Thailand has several startup fintech companies that have made a clear mark today:

Bitkub is Thailand’s leading cryptocurrency trading platform, enabling people to buy and sell Bitcoin, Ethereum, and other digital coins conveniently. This business has experienced rapid growth over the past year.

Finnomena is a comprehensive investment management platform covering stock markets, mutual funds, and foreign investment markets. It also offers financial planning advice and risk assessment.

Flow Account is a highly popular online accounting software suitable for businesses of all sizes. It’s user-friendly and requires no prior accounting knowledge—just select the appropriate form and fill in the details.

Pros and Cons of Using Financial Technology

Advantages of Fintech:

Cost reduction - Lower fees, saving time and manpower, enabling entrepreneurs to invest more easily and access broader capital markets.

Supports faster growth for SMEs and startups because raising funds is no longer difficult. Additionally, ordinary investors can buy and sell stocks, funds, or other assets anytime and anywhere.

Disadvantages of Fintech:

Financial security risks - When lending institutions easily provide loans, inflation may rise, affecting the overall economy.

Data security issues - Risks of hacking accounts and online fraud, as all personal data is stored digitally.

Who Should Use Fintech?

Answer: Everyone and all occupational groups, such as:

General Public - Can perform transactions independently without intermediaries.

Banks and Financial Institutions - Fintech does not replace banks but helps reduce costs and reach more customers.

E-Commerce Entrepreneurs - Can accept payments through multiple channels and track transactions instantly.

Investors - Can open investment accounts themselves and invest in stock markets, funds, or digital currencies from home.

Businesses of All Sizes - Digital accounting systems make financial management easier.

The Future Importance of Financial Technology in Thailand

Both government and private sectors in Thailand highly emphasize fintech. The government has created platforms like “Paotang” to stimulate the economy, while private companies incorporate fintech into their operations.

However, the growth of fintech in Thailand faces several obstacles:

Legal Issues - Thai laws currently do not permit issuing visas to foreign investors, hindering startup fintech development.

Funding Problems - Thai banks are reluctant to lend to startups due to high risks.

Human Resources - There is a shortage of personnel with specialized fintech knowledge. Additionally, some populations lack access to digital payment systems.

To foster fintech growth, urgent legal reforms are needed, allowing foreign experts and digital nomads to participate in development. Moreover, funding support for startups and additional training to improve public understanding of financial technology are essential.

In the future, (Fintech) is expected to grow, albeit more slowly than in other countries. Nonetheless, to make fintech a key driver of Thailand’s economy, the issues mentioned above must be addressed promptly.