The Thai Bankers' Association (TBA) is mulling a new fee structure for the industry, with higher service costs for banks possibly passed on to customers.
TBA president Payong Srivanich said bank members have discussed a new fee structure in line with operating costs. Banks plan to consider the operating expenses of both traditional and digital banking services before finalising a new fee structure, which will include discussions with the Bank of Thailand.
The current fee structure for the industry is distorted and does not reflect operating costs, said Mr Payong. For example, there are higher costs for branch services, but banks do not charge fees for this channel.
In addition, Thailand is the only country in the world that does not charge a fee for digital payments, he said.
Banks invested heavily in technology infrastructure, including security systems, which lead to higher costs for the sector, said Mr Payong, who is also chief executive of Krungthai Bank (KTB).
"Higher costs may pass through to customers at reasonable prices. With a new fee structure, banks would gradually balance the fees charged for each channel, transitioning from a cash-intensive society to a cashless society in the long term," he said.
In a related development, KTB recently partnered with Fidelity International, a global investment manager with 50 years of experience operating in more than 25 locations and managing investments worth US$728 billion. The goal is to improve wealth management capabilities.
Under the collaboration, Fidelity provides KTB with support in various areas such as delivering investment products, providing advisory services, and sharing insights and market commentary to facilitate the bank's business expansion.
As the country's third-largest lender by total assets, KTB aims to double its wealth customers within three years. The bank has around 200,000 wealth clients, with assets under management exceeding 2 million baht.
Targeting the development of wealth technology, the bank also offers investment products via the Pao Tang and Krungthai NEXT mobile apps.
"The wealth management business has high market potential. This partnership and our wealth tech strategy, as well as more than 40 million digital users, should facilitate the bank's business expansion significantly over three years," said Mr Payong.
Rajeev Mittal, managing director of Asia-Pacific ex-Japan at Fidelity, said Southeast Asia is a priority for Fidelity, which has been serving clients in the region for more than 20 years.
This partnership allows Fidelity to bring decades of investment management experience to the Thai market, he said.
Mr Payong said KTB is interested in applying for the central bank's new virtual bank licence, but is awaiting regulations, which are due in the third quarter of this year.