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HARNESSING THE POTENTIAL OF FINTECH IN DEEPENING FINANCIAL INCLUSION: PRACTICAL REGULATORS EXPOSITIONS
In Thailand, such changes in demand and behavior were met by PromptPay, the national digital payment infrastructure launched a few years ago (which enables the receiving and transfer of funds using the citizen ID or mobile phone number). This allowed for the integration of DFS, particularly in government economic recovery programs, in the form of e-wallets targeting those affected by Covid-19. Roughly 10 million individuals were able to register online instead of having to be present at a government office, and subsidies were disbursed through e-wallet using e-KYC to complete registration and the opening of accounts. The private sector and relevant parties have also worked on digital ID. Once this is fully developed, it will enable accounts to be opened through the secure National Digital ID platform3. These are some examples of how FinTech can be harnessed to assist people to conduct financial transactions without physical contact or leaving their homes, thereby achieving public health and personal hygiene whilst enhancing greater financial inclusion. In pursuing DFS, equal emphasis must be paid to both the front- and back-ends. While the front-end of user experience and convenience play an important role in the widespread adoption of DFS among the public, the back end of integration and need for the development of standards should not be neglected, hence the focus on Open Banking and Open Application Program Interface (API) in this meeting. The infrastructure for digital services should be utilized to benefit consumers within a secure ecosystem. There must be active cooperation from a broad range of stakeholders to ensure effective implementation, regulatory oversight, and the prevention of market fragmentation. The potential in financial innovation is huge but there have also been repeated cases of data breach and mis-selling of products and services often targeting the most vulnerable. Financial and digital literacy are the crucial enabler in deepening financial inclusion further.
3
hailand’s National Digital ID (NDID) is the common, open and T interoperable e-KYC platform that connects the parties to an e-KYC transaction in order to share information for identity verification and authentication.
ALFRED HANNIG EXECUTIVE DIRECTOR, AFI
The AFI Executive Director thanked the Deputy Governor and the Bank of Thailand for being a co-host of this second edition of the Knowledge Exchange Program (KX-2). He also acknowledged the bank’s leadership and its role as a co-founding member of this platform together with the Bank of the Philippines and Bank Negara Malaysia. The original idea for this platform, however, was generated by the Central Bank of Russia two years ago. After cultivating this further, it has reached the stage of having a systematic program. The Executive Director also acknowledged the participation of the People’s Bank of China, the Comisión Nacional Bancaria y de Valores (Mexican banking and securities regulator), the Central Bank of Russia, and the National Bank of Cambodia.
