Banking on transparency: Thailand opens data doors for financial access

The Bank of Thailand unveiled an open data initiative aimed at enhancing access to financial services for Thai citizens and businesses. The Your Data initiative allows individuals and small and medium-sized enterprises (SMEs) to share their data with financial institutions, facilitating improved access to a range of financial services.

The central bank’s project, in collaboration with regulatory agencies and financial institutions, enables all financial organisations to seamlessly connect and share data. Partners in this initiative include the Finance Ministry, the Securities and Exchange Commission, the Stock Exchange of Thailand, the Office of the Insurance Commission, and the Thai Bankers’ Association.

The open banking data system is set to become operational in 2026. During the Your Data event, hosted by the central bank yesterday, central bank governor Sethaput Suthiwartnarueput emphasised the importance of data security, noting that the initiative complies with the Personal Data Protection Act to ensure consumer data is safeguarded.

“Any data sharing requires the explicit consent of the individual consumer.”

Sethaput explained that the open banking data project is designed to enhance convenience, speed, and security for consumers applying for financial services. By providing more comprehensive data, the initiative aims to reduce operating costs and credit expenses for financial institutions, thus enabling consumers and SMEs to access loans and other financial services at more affordable rates.

Finance Minister Pichai Chunhavajira highlighted the transformative potential of the initiative in his keynote speech at the event. He remarked that leveraging data would be crucial in elevating the financial economy, allowing people to access more financial services at costs that accurately reflect real risks.

Data initiative

“The Your Data initiative will lead to the advancement of the Thai economy towards a digital economy and increase the efficiency of various activities.”

Pichai added that consolidating data scattered across multiple organisations into one place would benefit data utilisation, making it easier for individuals and SMEs to access credit, manage their lives better, and open opportunities for businesses to develop new financial products. Additionally, the government could use public data to design targeted measures to assist the population effectively.

Pichai stressed that data is central to improving financial services, helping to narrow the financial gap, addressing high interest rates that exceed the risks of borrowers, and tackling the issue of insufficient savings post-retirement, reported Bangkok Post.

For financial service providers, better data will enhance risk assessments, allowing institutions to extend credit more confidently at interest rates that accurately reflect the risk, Pichai said.

“This project can reduce the gap in financial services, as some groups are still unable to access these services. It will meet the needs of low-income individuals and SMEs that struggle to access financial services, ultimately leading to a digital economy.”