Thailand’s digitally shrewd clients are pushing its major banks to boost their technological investments in an effort to remain competitive, according to an S&P Global Ratings report. About 60% of the Thai population is between 15 and 55 years old, a segment that is becoming more attuned to digital services. Good mobile internet and surging smartphone penetration have also been beneficial. Furthermore, the government and the central bank have been influential in generating favorable conditions for digital banking.
Moreover, a record number of digital banking transactions have taken place during the pandemic, pointing to a strong acceleration in fintech adoption. Thai banks’ brick-and-mortar presence will eventually shrink as more transactions go online, even if Asian clients still prefer face-to-face transactions unlike their European peers.