As internet access becomes more relevant, new markets and business sectors such as information technology, finance, banking, and telecommunications are developing. This can expand opportunities for rural areas that were once outside the scope of urban centers to take advantage of mobile banking and empower formerly marginalized communities. With the help of the internet, everyone can join the development world with minimum requirements. For this reason, mobile banking in Thailand is currently more prevalent than ever.
Often in developing countries, banks and telecommunication infrastructure are scarce, while mobile phones are found in spades. This interesting dichotomy has led to the proliferation of mobile money and banking, which allows money to be transferred, deposited, and converted back into cash using only a mobile phone to do it.
Mobile Banking in Thailand on the Rise
According to the World Bank, as of 2016, Thailand’s rural population was 48.46%. With recent developments in mobile banking in Thailand, roughly 50% of the population will have increased opportunities to pay bills, conduct money transfers, and make everyday purchases electronically.
The role credits and loans have in the growth of developing countries’ economies cannot be overstated. Increased loan access is essential for allowing farmers, businesses, and consumers as well to utilize investment capital and help expand economic activity. As mobile banking in Thailand proliferates throughout the financial sector, it offers increased access to loans.
This past year (2017), Thailand has seen incredible growth in the mobile banking sector. The Bank of Thailand recently published data that illustrates a surge in the use of mobile internet banking in Thailand. Consumers’ increasing preference for digital transactions highlights the success of banks’ pivot toward more digital strategies.
The Benefits of Mobile Banking in Thailand
As Thailand continues to cement the transition to mobile banking, rises in employment, wages, GDP and productivity are expected. Consumers can expect to receive THB 3.3 billion in annual benefits, while businesses will see up to THB 72.9 in annual net benefits. Employment will rise by 1.6% and wages by 0.2%. THB is an abbreviation for Thailand Baht. In comparison, 1 USD equals 32.82 THB.
As the government and private sector continue to facilitate the growth of mobile banking in Thailand, electronic payments between consumers and merchants will become increasingly prevalent. The transition towards a cashless society and the advantages that come with it are many, one of them being the cost of transactions.
A study conducted by VISA predicts that the total benefits of Bangkok shifting to a cashless society will be approximately THBg 125 billion per year.
An Upward Trajectory
The Information and Communications Technology (ICT) Framework 2020 involves several strategies and goals that include universal broadband and a competitive ICT industry. With regard to the national broadband policy, the ICT Framework hopes to have 90% of the population connected by 2020.
Hopefully, as Thailand completes the transition to a more connected society, other southeast Asian countries will take notice and invest in better technological and banking infrastructure. In turn, these subsequent developments could make the region a burgeoning financial hub.
Since mobile banking is dependent on a strong broadband network, the future of mobile banking in Thailand looks bright, as the government prioritizes increased broadband coverage across the country.
– McAfee Michael Sheehan