The adoption of digital banking in Thailand has remained sluggish compared with elsewhere in Asia despite efforts by major banks to promote the technology as well as a soaring mobile penetration rate, says a global management consulting firm.
New York-based McKinsey & Co released a survey of 16,000 respondents across 13 Asian countries and territories including 700 respondents in Thailand.
It ranked Thailand's adoption of digital banking 11th out of 13 on its Asian digital-banking index.
The adoption of digital banking in Thailand stands at 19% of total bank users, higher than India with a penetration rate of 18% and the Philippines with 13%.
South Korea and Australia have the highest digital-banking penetration at 96% each, followed by Singapore (94%), Hong Kong (93%) and Taiwan (92%).
The figures show a drastic shift in consumer behaviour compared with a similar survey in 2011, McKinsey said.
Digital banking in developed countries and territories such as Australia, Hong Kong, Japan, Singapore, South Korea and Taiwan is now near universal.
Growth in the adoption of mobile banking more than tripled from 2011.
McKinsey estimates more than 700 million consumers across Asia use digital-banking services on a regular basis, particularly in China and India.
The penetration of digital banking in emerging markets increased to 28% last year from 10% in 2011, while mobile banking rose to 26% from 5%.
Global internet banking is on the rise on the back of banks' efforts to enhance internet banking use and educate the public, according to the survey.
Pakorn Partanapat, a senior executive vice-president of Kasikornbank, said the pace of growth of internet banking in Thailand remained at such a low level because traditional banking services and channels, especially ATMs and branch services, continue to dominate the industry.
The government's digital economy policy will enable Thailand to enhance the speed of internet services, expanding mobile broadband coverage and further developing greater innovative online financial services such as electronic payments and e-commerce, he said.
However, Mr Pakorn said internet security was a major factor inhibiting wider adoption.
Those already using digital banking seem to have more confidence that the system is reliable.
At the same time, non‐users are much more service conscious and do not trust financial transactions made via internet channels.