ttb 56-1 One Report 2021 (EN)

3. National e-Payment National e-payment is a national agenda so as to promote standardized and modern electronic payment system that will help cutting transaction costs in the economy. Thai commercial banks are therefore expected to continue promoting Prompt Payment (PromptPay) services, EDC usage and expanding QR code payment. During the COVID-19 pandemic, Prompt Payment and QR code payment expanded significantly. In most recent period, Thai government has already utilized more e-Payment platform for tax rebating and cash transferring in welfare scheme for Thais through Prompt Payment system. In longer run, there will be further service launched for wider ranges of transactions such as dividend payment for stockholders and security orders payment in mutual fund. 4. Virtual Banking/Metaverse Due to great technological developments in the past five years, consumer behaviors and the Thai financial system have shifted towards digital channels. Virtual banking could be the new opportunities for the banking industry. It would operate solely online with no physical branches and mainly rely on digital channels to provide services including KYC, deposits, payments, loans, and investments. Furthermore, with the developments of Metaverse, the banking industry can find a way to develop new products to serve young customers. 5. Financial Technology and Cryptocurrencies With a major leap of cryptocurrencies in the last 2 years, banks need to adapt in order to find new opportunities in new products and tools within the cryptocurrencies world by investing through venture capital and merging with Fintech firms. Incorporating new technology, this enables banks to satisfy their customers’ financial service needs with new products, ranging from money transfer, payment, investment to insurance services, in a more-timely manner. Commercial banks are now interested to invest in blockchain and Defi (Decentralized Financial system) which are considered as non-traditional competitors of the banking system in the future. Looking forwards, the cooperation between bank and Fintech firms will accordingly be prominent. This would result in bringing together the strength of bank in wide customers base and Fintech firm in advance technology capacity to offer better financial services for customers with more efficiency. 6. Regional Partnership and Expansion Thai commercial banks began to expand in the ASEAN region through acquisition of foreign banks and financial services. Partnership building among ASEAN banks through the establishment of QABs (Qualified ASEAN Banks) along with the guideline of financial services liberalization will help reducing obstacles for Thai commercial banks in doing business in the region and for those Thai business sectors to gain more easy access in trade and investment within the region. 67 Form 56-1 One Report 2021

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