Kasikorn Research Center Revealed at the APEC meeting in 2022, this reflects efforts to push the economies and societies of member countries towards a sustainable direction. By growing with participation (Inclusive Growth), one of the ways to push is to support different groups of people. society to access financial services in the system (Financial Inclusion)
Although Thailand’s access to financial services in many aspects is higher than the APEC average, the access to credit services Including credit or debit cards is still lower. which is a problem that Thailand can develop further
An example of action that can be taken is to increase competition between bank and non-bank service providers. especially in online channels Reduce transaction costs for credit service providers. It gives players an opportunity to access the country’s infrastructure. financial literacy as well as creating and promoting careers By virtue of trade relations within the APEC group, etc.
The key issue of the Asia-Pacific Economic Cooperation Conference (APEC) 2022 will be the theme of the forum: openness, building relationships. Connect to balance (Open. Connect. Balance.) by opening up to opportunities in trade and investment. Connecting and revitalizing travel travel facilitating trade and investment Balancing and promoting the economy based on a sustainable environment under the bioeconomy – circular economy – green economy model (BCG Economy Model)
Under the issues mentioned above, it reflects efforts to drive the economy and society of the member countries towards a sustainable direction. It is inclusive growth or participatory growth. which encourages the sharing of common interests and encourages all groups of people in society to have equal opportunities One of the ways to stimulate inclusive growth is to support different groups of people. society to access financial services in the system (Financial Inclusion) on the expectation that having sufficient funding At a cost suitable for the risk and quickly that will help those people or businesses. Being able to expand investment and increase more income opportunities in the future
Focusing specifically on the context of access to financial services in APEC, the Kasikorn Research Center found interesting issues as follows:
Most of Thailand’s access to financial services is above the APEC average. (compared to the total population over 15 years old) savings in financial institutions digital payment transactions in the proportion of 95.6 percent, 67.1 percent and 92.0 percent, respectively, which is higher than the general picture of APEC on the proportion of 82.1 per cent, 61.4 per cent and 78.1 per cent, respectively, and higher than the general picture of access to services in those areas of the world as well
Thailand is unique in the dimension of transactions through digital channels. As a result of pushing the PromptPay project (PromptPay) and releasing fees for money transfers through digital channels from 2017-2018, and then pushing the government wallet application later. All of them have accelerated the growth of transactions through digital channels in Thailand. In 2021, the proportion of the population making payment transactions is about 92.0 percent, which is higher than the overall APEC figure of 78.1 percent which extends to increasing access to credit as well as establishing payment links with other member countries, which is a way to do that The Bank of Thailand is currently working
However, in terms of access to credit services including that credit or debit card Thailand is still below the overall picture of APEC, which is a problem that Thailand can develop further. Although Thailand has a ratio household debt higher than many countries in APEC, increasing the rate of financial access (Financial Access) on the credit side for Limited groups (Unserved and Underserved) is still important and necessary. This is because data from the World Bank shows that the rate of use of credit lenders in Thailand’s formal system is 30.4 per cent, which is lower than the overall APEC share of 38.2 per cent, mainly due to the Financial Inclusion Survey in the household sector’ r BOT in 2020 reflected from the financial section limitations of status or insufficient income. Don’t know, you lack knowledge and understanding of credit products. and do not dare to contact financial institutions Because they are afraid of being rejected, while there are many Thai people who choose not to use credit products. because it is not needed yet (Self-excluded)
The pictures above emphasize that although the Thai authorities and various Related parties must move forward to solve the Thai household debt problem. the game must be continued to increase the rate of access to credit in the system at the same time through an actionable method for example
Increasing competition between banking and non-bank service providers especially in online channels Among the familiarity of using various online services on mobile phones and e-Wallets of the increasingly broad Thai population. which increases such competition This may include new licensing for Digital Only Bank or Virtual Bank under the need to target potential customers. in order not to lead to lending on existing customers who already have access to credit And the credit release data of service providers must be closely monitored. to prevent systemic risks while there is such competition it must also be based on the principle of equality between service providers (Level Playing Field)
Help reduce transaction costs for credit service providers. By supporting access to large databases such as databases of low-income people in the country, there are also privately owned databases, such as e-commerce transactions. or a mobile phone that is practical May require amendments to the law and have practices consistent with personal data protection law. inevitably affecting various businesses who previously owned the system Causing the need to carefully weigh up the pros and cons Including also evaluating the functionality in practice
An example of the effort for Big Data to be used for credit use is the Chinese authorities who have amended a number of laws and cooperated with large private companies in 2012-2013 to support lending. Sharing customer behavior data and promoting the use o Big Data in the financial industry. As a result, large technology companies Commercial banks, mutual funds and insurers can use this information to offer financial services to their customers more efficiently. Commercial banks, mutual funds and insurers can use this information to offer financial services to’ w customers more efficiently Able to access and use Bank Customer Data (API) to conduct payment transactions, etc.
present part Many of Thailand’s online loan providers use data on their customers’ social media activities and behaviors. Credit consideration has already been taken. This improves the efficiency of the credit provider’s credit analysis tools.
Give players the opportunity to access the country’s infrastructure, such as the payment system Under the appropriate cost of service between service providers, ultimately lower service cost of service providers. It will help to transfer to the lower interest rate loan from the original.
Providing financial information and promoting a correct understanding of problems that can arise from using debts informally while providing financial literacy It should focus on financial education about appropriate spending. home accounting prioritizing debt payments, savings, and cyber security. help promote such financial literacy To be the company’s CSR activity and the government may consider giving permission to be used as a corporate income tax deduction, etc.
career building and promotion is the key to ensuring the sustainability of the income stream This will help alleviate the problem of accessing credit. and sustainable household debts As well as promoting alternative careers and professional integration Perhaps the authorities can expand on trade and marketing. upgrade household products and various professional groups by connecting to the supply chain of large businesses or trade privileges within the APEC group with a variety of member countries, etc.
In conclusion, in terms of access to financial services This is an important element for inclusive growth, although Thailand stands out from many countries in APEC in terms of ownership of financial accounts, savings, and digital transactions. But Thailand still needs to make progress in promoting access to credit services. For people with limited access to credit, for example, from insufficient or regular income problems and lack of information Get credit in the formal system with lower interest rates than relying on informal credit. Including getting better credit terms This will lead to further investment to increase career opportunities and improve quality of life in the future.
Nevertheless, the implementation of various policies should be done continuously and specifically designed to suit the local level under the cooperation of different government agencies that harmonize to be able to solve the problem of credit access with the aim of creating this new home loan Its purpose is to build a career and add real value to life.
