Finance/Thai digital banking progresses

Editorial team

Thailand scoring above global average on mobile banking features and functionalities

Thailand scoring above global average on mobile banking features and functionalities, with potential opportunities for Thai banks to further enhance their digital channels, particularly in account opening and banking relationship areas.

Deloitte consulting recently completed the largest global digital banking study, revealing Thai banks score amongst the top ranks in customer retention on mobile banking, alongside USA, China, India and the UK and others surveyed

Deloitte’s 5 th biennial global digital banking maturity assessed Thailand together with 40 other leading countries for digital banking services globally. This is the first ever that Thailand is included in the global study.

The study analyzed selected Thailand retail banks’ web and mobile channels across 1,200 data points throughout their customer journey, based on an assessment of digital functionalities, customer needs research, and user experience evaluation.

Overall, Thailand’s digital maturity is on par with global average at 40% but trailing digital champions by at least 1.5 times.

Ms Metinee Jongsaliswang, Deloitte Consulting, executive director and Thailand Country consulting leader

“The digital banking landscape in Thailand is still in its premature stages; scoring only 43% in mobile banking functionalities compared to 63% from digital champions. The Bank of Thailand’s public consultation earlier this year has clearly highlighted the intent to introduce new virtual banks to encourage innovation and support financial inclusion. This is likely to lead to a significant investment in functionality and user experiences provided by both incumbents and new entrants,”said Deloitte Consulting, executive director and Thailand country consulting leader, Metinee Jongsaliswang.

The study shows Thailand scoring above global average on mobile banking features and functionalities, with potential opportunities for Thai banks to further enhance their digital channels, particularly in account opening and banking relationship areas.

“This 5th edition of our global digital bank maturity study has allowed a first opportunity to assess the breadth and depth of Thai digital banking offerings relative to the rest of the world. What we have seen overall is a strong base of core transaction and servicing capabilities particularly in areas of customer onboarding functionalities (46% vs 41% global average), with an opportunity to re-look at UX, and explore wider “beyond banking” engagement such as personalized services and lifestyle purchases to drive them to the next level”, said Alex Douglas-Jones, director, financial services, Deloitte Consulting

Mr Alex Douglas-Jones, director, financial services, Deloitte Consulting

The survey of Thai banks shows a level of capability that places the country in line with global averages. The forthcoming Virtual Banking Framework and subsequent award of licenses to new entities are likely to lead to an increased focus on leading digital functionality and experience in 2023 and beyond.

“From our experience in supporting incumbent banks in the region in their digital roadmaps, we have seen a significant increase in investment in digital propositions as a response to regulatory virtual bank license regimes. Equally, when we have supported successful new license applicants around ASEAN and North Asia, we have consistently seen the intention to raise the game with new and innovative features and UX to differentiate themselves from incumbent banks” said Mr Douglas-Jones.

The study found that global digital champions had up to 3x the functionalities of other banks, adopting value-added services as their biggest differentiator; an example is shown where 53% of digital champions offered credit scoring compared to 15% of other banks.

Incumbents and new entrants in Thailand are facing increased competitive pressures as customer expectations heighten in terms of digital banking experience; a roadmap that aligns to both business case and customer needs, including curation of the supporting capabilities and technology to enable speed and agility, is essential in building out the digital banking journey.

Key differentiators such as peer-to-peer transactions and marketplace banking are just some of the innovative features offered by global digital champions to take into considerations.

“As Thai banks look forward into the future, they must consider the “moments that matter” to their end-customers and invests in customer experiences to enable seamless digital experience. Thailand will benefit from the learnings of digital and virtual banks globally,” says Ms Metinee.

Examples from global leaders were also presented as opportunities for potential digital enhancements across customer journeys in Thailand, including:
• Information gathering: Provide product information dedicated to specific target groups
• Account opening: Ability to perform end-to-end account opening fully on the digital channel
• Day-to-day banking: Ability to personalize financial management on savings, credit cards, debit cards via mobile app / internet banking
• Expand relationship: Offers discounts and promotions through loyalty programs to create stickiness in banking relationship
• End relationship: Retention offers to customers when attempting to end relationship The Digital Banking Maturity study is one of the biggest benchmarking of digital banking channels in the world conducted on a biennial basis by Deloitte Consulting. The 2022 edition covered over 300 banks in 41 locations across 5 continents.