Thai regulatory approaches to technology-driven innovation in financial services

Abstract

In recent years, Thai policymakers have adopted laws aimed at keeping pace with contemporary technological developments. This can be seen from the issuance of a number of legislative measures regulating innovative products and services that cannot be effectively dealt with under existing laws and regulations, including those related to financial services. More specifically, Thailand 4.0 has been presented by the government as a policy to transform Thailand into a more innovation-driven or technology-driven economy. In accordance with the policy, there is an agenda to develop a technology cluster and future industries which are related to digital, Internet of Things (loT), Artificial Intelligence, and embedded technologies. The aim is that by using digital tools and IoT as platforms, it will be possible to enhance productivity, quality, and innovation in various economic activities. This can be considered as an important step for Thailand in responding to the rapid development of innovation and technology in various sectors. This chapter reviews these efforts, with a particular emphasis on fintech, as well as considering supplemental initiatives that might be useful to develop further the fintech ecosystem in Thailand. Finally, the chapter considers recent government efforts to intervene and strengthen industry associations as an example of ‘soft law’ mechanisms in.