Thai Bankers’ Association considers new fee structure for industry
The Thai Bankers’ Association (TBA), which represents the banking industry in the country, is contemplating the introduction of a new fee structure in response to increasing operating costs. Banks are planning to take into account expenses from traditional and digital banking services while finalising the updated fee structure. This will be done in conjunction with the Bank of Thailand.
The existing fee structure does not reflect these costs and puts banks at a disadvantage, said Payong Srivanich, the president of the association. He stressed that Thailand is the only country worldwide that does not impose a fee for digital payments. Payong, who serves as the chief executive of Krungthai Bank (KTB), mentioned that technological investments, including security systems, resulted in greater costs for the sector.
As a result, Payong predicted that customers may face higher fees at reasonable prices. In the long term, a new fee structure would enable banks to gradually balance the fees levied on each channel, facilitating the transition from a cash-intensive society to a cashless one.
In a related event, KTB recently entered into a partnership with Fidelity International, a global investment manager with a wealth of experience, presence in over 25 countries, and management of investments worth US$728 billion. The aim of this collaboration is to enhance wealth management capabilities.
Fidelity will work with KTB in various aspects, including offering investment products and advisory services and sharing market insights to support the bank’s growth. KTB, the country’s third-largest lender by total assets, aims to double its wealth customers in the next three years. The institution has roughly 200,000 wealth clients and manages assets worth over 2 million baht.
By adopting wealth technology, KTB is also able to offer investment products through the Pao Tang and Krungthai NEXT mobile apps. Payong believes that the burgeoning wealth management market and technology advancements, in conjunction with the more than 40 million digital users, should lead to significant growth in the bank’s business over a three-year period.
Fidelity’s managing director of Asia-Pacific ex-Japan, Rajeev Mittal, said that Southeast Asia remains a priority for the investment manager, which has a 20-year presence in the region. The partnership will bring Fidelity’s extensive investment management experience to the Thai market.
Payong further revealed that KTB is keen on applying for the central bank’s new virtual bank licence but is waiting for the relevant regulations, slated for release in the third quarter of the year, reports Bangkok Post.
