Experian, a UK-based information service and software provider, is expanding its permanent office in Thailand to capitalise on the rise of the digital economy, which is expected to contribute 25% of GDP by 2027.
Revenue from Thailand was the fastest-growing for Experian's global business in the fiscal year ending March 2018, a trend that should continue in the years ahead, said Ben Elliott, chief executive of Experian Asia-Pacific.
Speaking at the opening of the local office at Singha Complex yesterday, Mr Elliott said banks in Thailand are progressively investing in technology to stay ahead in Asia-Pacific as consumer demand grows for digital services, meaning banks need to offer frictionless experiences for consumers.
To build sustainable growth, Experian is establishing a local office after operating through partners for five years. Going forward, the company plans to double local employees in the next 12 months and offer credit services and decision analytics.
Dev Dhiman, managing director of Southeast Asia and emerging markets for Experian, said Thailand is a key strategic market as digital users and the government's digital economy develop.
According to the consultancy We Are Social, 74% of Thais access bank facilities via mobile phone, the highest in the world, and 82% have bank accounts.
We Are Social estimates that by 2027 about 25% of the economy in Thailand will be digital.
Banks also need to deal with compliance issues. Experian has solutions for IFRS 9 (International Financing Reporting Standard 9), the new accounting rule that banks must comply with by January 2020. TMB is Experian's first customer for IFRS 9.
"The forthcoming Data Protection Act also pushes demand for data security and data quality," Mr Dhiman said.
He said Experian has acquired and taken equity in fintech startups to offer more inclusive financial services, particularly in digital lending. By analysing the credit scores of consumers and verifying users through digital identity, banks can offer better loan services to users -- both existing customers and new customers who don't use banks.
"In the US and the UK digital lending is popular, and in Thailand it will take off soon," Mr Dhiman said.
For telecom services, credit scoring technology helps mobile operators offer dynamic airtime by profiling users and offering them advanced airtime use if their prepaid money runs out.