Digital deposit account opening using electronic Know Your Customer (e-KYC) technology for identity verification is expected to be rolled out this year, enabling consumers and the unbanked easier access to financial services, according to a senior official at the Bank of Thailand.
An additional seven financial institutions have applied to experiment with financial recognition technology through the National Digital ID (NDID) platform for identity authentication under the central bank's regulatory sandbox since the first six banks were granted permission on Thursday, said Siritida Panomwon Na Ayudhya, assistant governor for payment systems policy and technology.
The first group testing the service under the regulatory sandbox is expected to exit and offer digital deposit account opening by the end of the year, she said.
System stability, data collection system and consumer protection measures are determinants for when their service will be available on a wide scale, Ms Siritida said.
The six banks in the first group are Kasikornbank, Siam Commercial Bank, Bangkok Bank, Bank of Ayudhya, TMB Bank and CIMB Thai Bank, while Krungthai Bank is among the second group. Allowing non-bank payment service providers to experiment with the service is also in the central bank's pipeline.
The Bank of Thailand plans to allow other financial institutions, including insurance, securities and asset management firms, to test out e-KYC service in the regulatory sandbox in the next phase.
Through facial recognition facilitated by the NDID platform, e-KYC will provide consumers more convenience and security in making digital banking transactions, Ms Siritida said.
E-KYC would allow people, in particular those living in remote areas, to open deposit accounts easier without physically going to banks, helping consumers save time, she said.
"Opening new deposit accounts on the digital platform averages 20 minutes, a fraction of the hour needed when opening accounts at physical branches," Ms Siritida said.
With greater convenience, opening digital deposits account will facilitate new deposit base expansion, she said.
The central bank does not forecast growth rates of deposits in terms of amounts and accounts.
The new digital service is expected to strengthen the country's digital banking platform.
PromptPay, the government's online money transfer service, has 49.7 registrants whose transactions average 9.1 million with a combined value of 43.2 billion baht per day.