Fast track urged for fintech measures
Law promoted to help complete ecosystem
A financial technology (fintech) committee under the National Legislative Assembly (NLA) will propose that three measures in the Fintech Act be ready for use 90 days after the regulations are implemented.
Tipsuda Thavaramara, deputy secretary-general of the Securities and Exchange Commission (SEC) and a fintech committee member, said the NLA is deliberating the Fintech Act and the committee is in the process of preparing measures on e-transactions, the Know Your Customer (KYC) process, due diligence and open anonymous data.
Mrs Tipsuda said details of these measures must be finalised 90 days from the day the Fintech Act is implemented. After receiving the NLA's approval, the act will be considered by the prime minister.
"The challenge is the work scope for the committee, which is expected to help design the act and conduct follow-up supervision once it is implemented," she said.
A committee led by Vorapol Socatiyanurak, a former SEC secretary-general and chairman of the finance, banking, financial institutions and capital markets subcommittee of the NLA, is drafting the bill. The Bank of Thailand, commercial banks and the Thai Fintech Association (TFA) are represented on the committee.
Earlier reports said the act was expected to be implemented next year.
A law governing fintech is key to making the ecosystem complete because no current laws are designed for fintech business, said Korn Chatikavanij, TFA chairman and a former finance minister.
The TFA has thrown its support behind a draft bill on fintech, saying the law will help pave the way for infrastructure and create an ecosystem that will strengthen local fintech firms' competitiveness against foreign operators.
Mr Korn said Thailand could become a fintech hub among its neighbours, including Cambodia, Laos, Myanmar and Vietnam, because its market size is large enough to incubate and strengthen domestic fintech companies while offering services to neighbouring customers.
Language and financial skills are needed for human resource development among domestic fintech companies, Mr Korn said.
Mr Vorapol said there are several public agencies that have collected a vast amount of data, but such information will have value once it is used and integrated into a system.
"We have pinned our hopes on Thailand being a regional fintech hub," he said.