At the Asian Banking & Finance and Insurance Asia Summit today, financial experts addressed the role of artificial intelligence (AI) in shaping Thailand’s financial services sector. The event, which took place at the Renaissance Bangkok Ratchaprasong Hotel and attracted over 220 attendees, highlighted the nation’s ongoing challenges and opportunities in the digital finance landscape.
Warotai Kosolpisitkul, International Economic Advisor at Thailand’s Fiscal Policy Office, emphasized the country’s dedication to expanding digital finance. He highlighted the success of national electronic payment systems such as PromptPay and QR-code-based transactions, noting their vital role in Thailand’s economic resilience during the COVID-19 pandemic. He also discussed the government’s efforts to introduce virtual banking licenses, which will provide more affordable services and enhance financial inclusion, especially for unserved and underserved populations.
Christopher Saunders, Partner and Head of Financial Services Advisory at KPMG Thailand, discussed the growing importance of AI in financial services. He stressed that while AI adoption is essential for competitiveness, it does not guarantee automatic financial returns. He pointed to global data showing that AI-driven efficiencies can result in significant productivity gains and cost reductions. However, Saunders cautioned that AI’s return on investment is not always immediate and can be impacted by rising customer service costs and the struggle to meet increased demands for personalized services. In Thailand’s banking sector alone, Saunders estimated AI adoption could save $1.4 billion annually, especially in streamlining operations and automating customer service.
Naris Sathapholdeja, Chief Data & Analytics Officer at TMBThanachart Bank, shed light on the growing threat of digital fraud in Thailand’s banking ecosystem. With over $2.1 billion lost to digital fraud in 2023, Sathapholdeja outlined the challenges posed by increasingly sophisticated fraudsters who often leverage vast amounts of data. To combat this, the bank has implemented AI and machine learning models that can reduce fraudulent activities by up to 30 times.
The summit also addressed the evolving role of financial executives in a digital age. Andrew Samaratunge, Chief Financial Officer at Generali Thailand, highlighted the need for the insurance industry to catch up with banking in terms of digital adoption. Other experts stressed the importance of transformational leadership in navigating these challenges, combining technological literacy with a deep understanding of customer and employee needs.
Thanat (Beng) Chamnanratanakul, Associate Partner at Bain & Company, discussed the opportunities and challenges presented by Thailand’s mass affluent and retail sectors, which make up a significant portion of the country’s total assets under management (AUM). Despite the substantial assets, he noted that Thailand lags behind more developed markets like Hong Kong and Singapore in terms of market penetration, indicating potential for growth.
Rauhan Bhalla, Senior Account Executive at CleverTap, emphasized the changing dynamics of the total addressable market (TAM) driven by social media platforms like Facebook and Instagram. The need for clean data and the role of generative AI in navigating this evolving market landscape were key takeaways from his presentation.
On the macroeconomic front, Burin Adulwattana, Chief Economist at Kasikorn Bank, expressed concerns over the uncertain global economic climate, highlighting the potential risks Thailand faces, including the looming threat of carbon taxes. Adulwattana warned that without decisive action on environmental issues, up to 30% of Thailand’s GDP could be at risk.
The summit also explored the rise of embedded finance, a sector that has seen significant growth, particularly in e-commerce and travel. Experts discussed the regulatory challenges and the need for clear communication with customers to ensure data privacy and trust. Silvio Struebi, Partner at Simon-Kucher, identified key pricing and discount challenges in financial institutions, such as revenue generation from leader products, inconsistent pricing across products, and the ad-hoc nature of pricing adjustments.
In the healthcare sector, Thomas Wilson, CEO of Allianz Ayudhya Assurance, discussed Thailand’s healthcare sustainability challenges. Although the country’s health infrastructure is competitive, he warned of the financial strain caused by an increasing reliance on private insurance and out-of-pocket expenses.
The third panel of the summit focused on digital wealth management, with speakers highlighting the importance of refining digital strategies to balance automation with human expertise. Adisorn Hatairatana from Krungsri emphasized the need to advance credit risk models as the industry transitions to virtual banking.
The final panel delved into Thailand’s preparations for the launch of virtual banking, with leaders addressing the profitability challenges facing digital banks. Despite the promising outlook for virtual banking, Chalee Asavathiratham, President of Lightnet Group, pointed out that the majority of digital banks in Asia remain unprofitable. Experts urged institutions to form strong consortiums and avoid expanding purely for publicity.
Overall, the summit underscored the need for financial institutions in Thailand to adapt to AI, digital finance, and the evolving customer demands, while carefully managing risks and ensuring long-term sustainability.
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