- 80% of Thai consumers agreed that digital engagements with their banks have freed up their time to focus on other priorities; 61% of respondents are now happy to engage with financial services firm digitally
- 85% of those surveyed are embracing contactless payment, but there remains a gap in establishing trust with only 60% believing that their data is secure with financial services firms
- Thailand’s financial ecosystem needs to create a secure digital foundation to accelerate innovation as surveyed consumers place high trust in technologies of the future including artificial intelligence (70%), 5G (81%) and facial recognition (74%)
Thai consumers are embracing digital financial services rapidly, but in order to secure long-term success, financial services firms in Thailand must build a more robust and secure foundation to overcome key gaps in digital experiences and trust, according to VMware, Inc. (NYSE: VMW). The VMware Digital Frontiers 3.0 Study revealed that consumers in Thailand are the most appreciative of the value of digital products and services over the last year, with 80% of respondents stating that digital engagements with financial services organizations have freed up their time to focus on other priorities. This leads all other Southeast Asian countries surveyed: Singapore (55%), Philippines (62%), Malaysia (60%) and Indonesia (57%).
Some key study findings include:
- 61% of respondents are now happy to engage with financial services firms digitally.
- 64% would still switch to another brand if the digital experience did not live up to their expectations, highlighting the increasingly competitive digital battleground.
- 85% of respondents are embracing contactless payments and moving away from cash-based transactions.
- With 72% of Thai consumers surveyed now preferring to engage with their banks via apps rather than visiting in-person at a branch, growth-oriented financial services firms need to step up their transformation efforts to deliver the superior digital experiences Thai consumers now expect.
- 65% of respondents felt that financial services firms delivered better digital experiences compared to retail, healthcare, government and education organizations.
- 30% still feel that financial services firms have failed to adapt to the changing market.
- Consumer priorities in Thailand remain focused on core fundamentals that enable great digital experiences:
- Simple and effective applications (48%);
- High level of security and protection of consumer data (45%);
- Ease of use across all devices (45%).
“Thailand’s financial services industry has evolved drastically in the past year with the rise of new disruptors as well as consumers’ accelerated pivot towards digital channels due to the pandemic. With these, it is evident that innovations powered by cutting-edge technologies such as Cloud will be key to accelerate innovations and enable seamless and more secure digital experiences that will delight customers,” said Ekpawin Sukanan, Country Manager, VMware Thailand. “To respond faster to their evolving needs, a robust and trusted digital foundation will hence be critical to enable and accelerate innovations that delight consumers. To that end, VMware is committed to becoming a trusted partner and enabler by helping financial services organizations tap on frontier technologies and reap the benefits of digital transformation.”
Readying the foundations for digital banking in Thailand
Over the last year, more consumers in Thailand have embraced emerging technologies:
- 70% of respondents expressed trust in artificial intelligence.
- 56% are willing to let an app help make their investment decisions over an individual that works for the bank.
- 57% of respondents are comfortable for banks to gain access to completely accurate data about their daily lives for better financial advice and management.
- 79% of respondents stating that their phones are now more important than their wallets when conducting financial transactions (as compared to the Southeast Asia’s average of 64%).
“The pandemic has shaped new consumer needs and greatly accelerated the speed of innovation for Thailand’s financial services sector,” said Tawan Jithavech, Managing Director, KASIKORN Business-Technology Group. “At KBTG, our vision from day one remains simple – to stay one step ahead of change by embracing new digital banking technologies and creating a digital-first culture within our organization. As we move faster into the new financial normal, not only will this mark a key moment for our bank, but also for other forward-looking organizations, to enable and transform the future of finance by harnessing next-generation technologies such as Cloud.”
Technologies of the future show promise, but security and trust are still foremost concerns
Consumers in Thailand are showing willingness to embrace next-generation technologies with 74% of those surveyed expressing trust in facial recognition technologies and 5G (81%). When it comes to technologies of the future, surveyed consumers are optimistic of the impact to their digital experiences, with 44% believing that 5G can make banks more efficient and enable them to do things like process applications and credit checks faster.
Despite the optimism in emerging technologies, Thai consumers will not compromise when it comes to security.
- 83% of respondents consider security as the number one priority when choosing a financial services provider.
- 63% of Thai consumers surveyed feel paranoid that organizations are tracking and recording what they are doing on their devices – the highest amongst other surveyed countries in Southeast Asia: Singapore (57%), Philippines (56%), Malaysia (58%) and Indonesia (51%).
The implication is clear for financial services organizations: deliver not only cutting-edge innovations, but also secure and privacy-focused digital experiences to win the trust of Thai consumers.
Growing demands for an ethical and inclusive financial ecosystem
While Thailand’s digital journey has been positive with 86% of consumers surveyed defining themselves as “digitally curious” or “digital explorers,” consumers in Thailand are increasingly focused on more than just digital experiences when choosing their financial service providers.
- 61% of respondents will stop engaging with organizations that do not publicly share their ethical policies.
- 87% of respondents are also expecting technology to advance financial inclusion within the next decade, slightly higher than its Southeast Asian counterparts: Singapore (81%), Philippines (85%), Malaysia (83%) and Indonesia (84%).
Technology key to accelerating economic growth and recovery
Progressing into 2021, VMware outlines key priorities that will further strengthen the transformation of Thailand’s innovation-led financial ecosystem:
- Empowering financial services organizations to build a multi-cloud and app future: Unlocking multi-cloud future with app-driven innovations in a consistent and more secure environment that enables continuous innovation
- Enabling innovation and productivity for a distributed workforce: Future ready workforce solutions will enable a seamless and more secure digital employee experience, driving greater outcomes in the new world of work
Intrinsic security for uninterrupted innovation: An intrinsic approach to enterprise security will provide an additional layer of robust protection for mission-critical operations and infrastructures to fast-track business innovation and resilience