Thai business and trade are set to witness a long-lasting change in the next six months as three major companies launch blockchain trading, a move that will affect banking fee income charged from clearing transactions.
The companies expected to launch blockchain trading are in three different sectors: telecommunications, insurance and healthcare services, said Bobby Bhatia, founder and chief executive of TrakInvest. He did not specify which companies.
The three sectors have a large customer base, and customers can seek company information through the online system and via smartphone.
"Blockchain is beneficial for customers because of how they can easily reach company information, trading and the payment process," Mr Bhatia said. "This lets customers pay a lower fee charge, as companies will operate the transactions themselves instead of using banks as a medium."
Mr Bhatia said blockchain technology will play a more active role from now on, not only in equity, banking and investment trading, but also in other sectors as blockchain enables companies to create their own payment systems.
Banks will have to modify their business model and apply new technology, he said, citing how Siam Commercial Bank (SCB), Thailand's oldest financial institution, has partnered with TrakInvest for licence and usage of TrakInvest's technology across various initiatives.
SCB will also launch investment centres across the country through a tie-up with various universities to build on the bank's vision of providing financial education to millennials.
TrakInvest, the world's first virtual social trading platform, was founded by Mr Bhatia. It has been used by large universities, corporations and governments to provide practical training and investing experience to a large number of students across Singapore, Thailand and India.
TrakInvest provides users with a simulated platform for trading in stock markets where all the stocks and stock prices are real, but the money is virtual.
The platform allows trading in 15,000 stocks on 10 stock exchanges around the world.
TrakInvest also provides an automated advisory solution known as robo-advisory, an algorithm-based service, at a nominal cost.
As a result, the services of traditional wealth managers are being commoditised as retail customers gain access to wealth creation opportunities through this kind of platform, Mr Bhatia said.
TrakInvest launched its own cryptocurrency, the TRAK token, to let users earn real money on the platform. The TRAK token was done through an initial coin offering (ICO) on Dec 16.
Meanwhile, Ultra Wealth Group (UWG) recently partnered with TrakInvest on a stock and cryptocurrency investment course module.
Beginning this month, students can apply the theoretical concepts of stock trading to trade with fake money and prove their performance using the TrakInvest platform.
UWG is chaired by Chatchaval Jiaravanon, whose corporate positions include board member at True Corporation Plc, chief executive of Charoen Pokphand Indonesia and chairman and founder of Charoen Energy and Water Asia.
"Partnering with TrakInvest will allow students to gain practical stock investment experience with virtual money to reduce the risks for participants during the learning stage," Mr Chatchaval said.