Banking in Thailand officially started in 1906 and expanded together with the rise of trade. The continuous growth has led to an established and modernized banking sector, with the Bank of Thailand founded as the country’s central bank. The expansion of Thailand’s banking sector has brought about greater access to financial systems, as seen by the increased number of automated teller machines, along with being one of the leading countries in the Asia Pacific with a high banking population. Thailand’s banking sector now provides various financial services, depending on the types and demands of clientele.
Banking services in Thailand
The most common service among banks in Thailand is retail banking, which focuses on day-to-day financial activities such as deposits, loans, and savings. To keep up with the expected level of newly established firms, it is also essential for banks to provide corporate banking services, especially since small and medium enterprises are a significant driver of the country’s economy. The recent COVID-19 pandemic has given even greater importance to corporate banking services since financial policies greatly assist smaller businesses during the pandemic compared to other government policies. Furthermore, larger companies may also engage in investment banking, emphasizing corporate demands for expansion and funding opportunities. Despite the great variation of services already provided by mainstream banks, consumers or smaller businesses in specific industries may also engage in banking services from cooperatives such as thrift and credit union cooperatives.
The banking sector during and after the COVID-19 pandemic
Thailand’s economy was among the most heavily affected by the COVID-19 pandemic in the Asia-Pacific region. The pandemic has, without a doubt, influenced the banking sector’s performance since it relies on the health of other businesses. Despite the significant impact on the country’s economy, the banking sector remained resilient through efficient credit practices by providing soft loans. Additionally, digital banking has become more popular for banks and clients since it eases contactless transactions during the pandemic. Consumers have thus developed a preference for financial management through digital mediums, especially for digital payments through mobile platforms, which is very likely to be carried out in the post-pandemic climate. Therefore, banks must now keep up with client demands for faster, more efficient, and easy-to-use financial systems, as well as maintain their customer base through appealing credit and loan structuring programs as the economy gradually recovers from the effects of the COVID-19 pandemic.
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