BoT increases the potential of service users – improves criteria to support digital finance

Governor of the BoT prepares to increase the potential of service users - improve criteria to support digital finance. Aiming at developing the digital financial ecosystem and financial innovation

Within the BOT Digital Finance Conference 2023 under the concept of Building Ecosystem for Responsible Innovation, organized by the Bank of Thailand (BoT) between 14-15 September 2023 at the BoT Learning Center, by invitation 85 experts from 15 countries came to share experiences and ideas on Develop digital financial infrastructure Adopting innovations in the financial sector, especially Artificial Intelligence (AI), leveraging Open Data, and supporting innovations that take care of risks on a fundamental basis. of overall social responsibility (responsible innovation). The main stage discussion on September 14, 2023 has important issues as follows:

Developing an ecosystem to support responsible innovation by Mr. Setthaput Suthiwat Narueput, Governor of the BoT, gave opening remarks. Bringing up the 3 O's (Open Competition, Open Infrastructure, and Open Data) principles that are still an important basis for system development. An ecosystem that promotes responsible innovation. In the future, the BoT will focus on 3 main issues:

(1) Developing a common utility that is like a public service in the digital financial sector, starting with increasing the potential of financial service users by promoting the rights of service users to submit their information. Address with each financial service provider to other service providers (data portability) for service users Such people can access services or financial resources that are more suitable to their needs. At an appropriate cost, the BoT will improve related regulations and promote the creation of standards in data transmission between various service providers under the supervision of the BoT in order to reduce cost burden and build confidence. About safety in sending and receiving Information according to the consent of the service user It will also encourage the transmission of information from sectors other than the financial sector and develop use cases that can share financial infrastructure. To reduce costs and Increase overall efficiency

(2) Developing a digital payment ecosystem that increases access to critical infrastructure. by various players and supporting Thailand to move towards a less-cash society by improving rules and reviewing Related fee structure

(3) Developing financial innovations together with the business sector under an appropriate risk management framework with a more flexible New Sandbox. Provide an opportunity to test unregulated activities that are beneficial to the public, such as tokenization that helps SMEs have better access to funding sources and programmability. That helps increase efficiency in payments. In addition, the BoT will work with relevant stakeholders to develop the use of AI in the financial sector, such as detecting and preventing fraud, as well as promoting Access to financial services. Cooperation from stakeholders in all sectors is very important to success in pushing for the above priorities. The BoT hopes to jointly drive these important issues with Closely related people

Mr. Ronadon Numnon, Deputy Governor for Financial Institutions Stability, BoT, and a participant in the discussion on the topic “Digital Infrastructure and Ecosystem for the Future of Financial Innovation” emphasized the above points. They agreed that they would push infrastructure and create an ecosystem. that successfully supports innovation It must start by adjusting the mindset of all parties to be open to Use technology while stakeholders must have a common vision and be able to coordinate benefits between each other appropriately, including enhancing the public's financial knowledge and understanding of financial services. that uses technology as the basis as well as being able to deal with financial disasters It is a risk that can come with technology.

Meanwhile, participants in the discussion on the topic “PromptBiz: Bringing Business and Financing up to the Next Level” saw that the PromptBiz system or central payment infrastructure for the business sector It will help you do a fully integrated digital business. Can link trade information, payments, and extend it to other services such as lending. Helps reduce operating costs, especially those related to issuing and delivering various documents, as well as increasing the efficiency of business processes because information can be checked between them quickly. In addition, having a reliable digital footprint in system This will also help increase opportunities to access funding sources for the business sector, especially SMEs. As for government agencies It can increase efficiency and digitize various processes, such as procurement.

There was also a discussion on the topic “How Payment Innovation is Thriving in AI Era?” which participants agreed that Service providers can apply AI in the payment aspect from the basics of providing services, that is, making it easy for people to use the service, safe, reliable, and reducing concerns from fraud, as well as being able to expand by using AI to analyze payment data to To understand customer behavior and be able to develop products/services that better meet their needs. Ethics and governance issues of artificial intelligence must be taken into account. Important challenges as well

For the Fireside chat on “From Visions into Action: What's Next for Open Data?”, participants emphasized the importance of the right to transfer personal data without barriers (friction). Supervise appropriately Including creating incentives for both business operators and people accept the concept of open data without having to limit it to financial sector data only. Because the more diverse information there is to expand on It will be even more beneficial. The financial sector should therefore collaborate with other business sectors to develop use cases that truly suit the OpenData concept.

While Mr. Chatchart Sitthiphan, Governor of Bangkok They shared their experiences in developing Bangkok into a “smart enough city” using technology as appropriate. Able to answer people's needs Emphasis is placed on fully disclosing information and communicating with government officials through digital channels. to increase transparency build confidence and promote public participation in urban development. Currently, the Bangkok Metropolitan Administration (BMA) has released more than 1,050 data sets from agencies in Bangkok, such as annual budgets. Procurement Community and demographic information traffic information green space So that people and agencies in both the public and private sectors can further develop the project. and various innovations, as well as fully examining the transparency in BMA's operations.

Source: Thai News Agency