Q&A Now: Chonladet Khemarattana, President of the Thai Fintech Association
In Southeast Asia, Chonladet Khemarattana is one of the most influential figures and guiding forces in financial technology (Fintech). As President of the Thai Fintech Association, he is in charge of steering Thailand’s fintech landscape towards innovation and growth, with a vision to establish Bangkok as a prominent fintech hub in the region.
On April 24th, at Money20/20 Asia in Bangkok, we held a Q&A interview directly with Mr Chonladet to uncover his story, insights, and perspective on fintech in Thailand.
“Forging the Path Ahead – Fintech Landscape in Asia” Panel Discussion
Q&A: Chonladet Khemarattana
Q: What motivated you to become the President of the Thai Fintech Association?
A: I have been here since the beginning. Seven years ago, we went on a trip from Thailand to Singapore and Malaysia, where we collectively established the fintech associations in these countries. From that moment, I was one of the Co-Founders, with my name on the registration papers at the Ministry of Interior. I then took a break for two terms, four years, as I had just set up several of my own fintech startups.
I then returned due to the association’s financial and regulatory challenges. I assembled a team of five committees, including myself, where I covered Wealth Management, WealthTech. Khun Jirayut, Founder of Bitkub, leads Digital Assets and Blockchain efforts, while Khun Amarit oversees InsurTech, KYC, and B2B matters. Khun Aekkasit focuses on Crowdfunding, and Khun Thanobol, who joined later, represents payments and digital lending. In my perspective, we are a good team.
During my first term, my priorities were improving our PR and website and engaging more with regulators. Previously, foreign fintech members could apply but not vote, so one of my key policies was to level the playing field for everyone. Therefore, domestic fintech players, banks, startups, and international firms now have equal voting rights.
Chonladet Khemarattana is also the CEO of WeBull Securities (Thailand) and a Member of the National Savings Fund’s Board of Directors. With more than two decades of expertise in the capital markets and has launched several fintech startups, he was also the first to introduce algorithmic trading to retail investors in Thailand.
Q: What is the primary objective of the Thai Fintech Association at this time?
A: We recently implemented this year’s policy to promote Bangkok as a Fintech Hub, which is also one of the government’s policies. The Association has already been internationalised, with almost everything in English. Therefore, we encourage fintechs from other countries to start operating and setting up offices here in Thailand.
To do that, we need to talk with many entities, such as the Ministry of Commerce, which could provide an efficient process for company registration and a one-stop service for fintechs, or the Board of Investment, which could provide tax incentives for corporations looking to move to Thailand.
Q: What challenges does the Fintech industry encounter in Thailand?
A: Fintech startups face the most challenges because there are so many regulations to comply with. Firstly, they need substantial registered capital, which is quite difficult without the help of a bank. This is also why we don’t have any Fintech Unicorns in Thailand; without the support of a large bank with significant scaling operations, it is quite challenging to grow to that size.
Thailand’s banking sector is great because of its size and the high level of public trust, unlike in the US, where there is an imbalance. In Thailand, the bank’s reputation is very important. This is why fintech startups prefer to be with a bank, utilising the customer base, funding, and market reputation.
Q: How does the Association support Startups and Entrepreneurs in the Fintech sector?
A: The association has many members, including startups and VCs, so we facilitate connections and partnerships through meetings such as dinner events. Through these networking opportunities, we connect startups seeking funding and the same with VCs.
Q: Can you highlight some notable achievements of the Thai Fintech Association?
A: Right now, we have gathered many partners, both locally and internationally, and we have gained the trust and recognition of all the regulators in Thailand and the government, which is quite difficult. We are open to collaborations, such as our ongoing partnership with the Embassy of Hungary, where we’ve co-created the Thai-Hungarian Fintech Forum over the past two years, proudly supported by His Excellency Ambassador Sándor Sipos.
We have also extended similar support to the Australian Embassy and fintech associations there, inviting Australian fintechs, primarily B2Bs, to join us here in Thailand. We have also signed various MoUs with other fintech associations and co-founded the Fintech Alliance alongside nine other countries, including Japan, Taiwan, and Korea. This is important in making Thailand a Fintech hub in Southeast Asia.
Q: What recent innovations have the Thai Fintech Association observed?
A: Regarding Innovations, we can focus on two main regulators: the Central Bank and the Securities and Exchange Commission. The Securities Commission has excelled in digital asset management, particularly with real-asset-backed tokens, which allow for tokenising physical assets like real estate.
The Central Bank of Thailand is embracing virtual banks with an open competition policy allowing unlimited licenses. In Thailand, we don’t have a problem with the unbanked, with more than 90% of our population accessing bank accounts, especially mobile banking.
The Bank of Thailand has Central Bank Digital Currency (CBDC) initiatives. The Central Bank has done its wholesale CBDC test under the Inthanon project name. On the Hong Kong side, they have the LionRock project, and later, our countries collaborated to cover China and the UAE.
For retail CBDCs, the Bank of Thailand, in partnership with Siam Commercial Bank, Ayudhya Bank, and 2C2P, organised a Hackathon to promote the idea to startups and others. So, it is just a matter of time before the Bank of Thailand implements retail CBDCs here.
Q: How do you see the role of AI, Blockchain, and other emerging technologies in Thailand?
A: In Thailand, we have seen many blockchain and CBDC applications. For example, I founded a blockchain-based polling company called D-Vote. Through blockchain technology, we have collaborated with the governor of Bangkok to hold an actual election for the Bangkok youth committee.
I’ve also heard of some people using the blockchain to maintain medical records. I believe blockchain technology will become mainstream for supply chain management later on. However, we don’t jump into the hype of blockchain. We will start with the requirements and then determine which aspects should be on-chain and off-chain.
I think we will see many use cases for AI, such as chatbots and robotic voices, for various services. I have seen someone using AI to provide a user interface for investment recommendations.
Speaking on Stage at Money20/20 Asia 2024
Q: How can individuals or companies effectively engage with the Thai Fintech Association?
A: Just reach out to us. We will connect you with the right people depending on your fintech sector. We are always looking for opportunities for collaboration and partnerships. Through the association, many people who specialise in various fields can help and support those organisations.
Q: Could you tell us more about the recent collaboration between the Thai Fintech Association and Fintech Australia?
A: Our collaboration with Fintech Australia represents a strategic partnership to leverage Australia’s fintech expertise and Thailand’s position as a gateway to Southeast Asia. With over 600 million people in Southeast Asia, we are the ideal fintech hub for Australian B2B startups seeking expansion.
We also assist domestic partners seeking to explore the Australian market through our partnership. We have also established similar partnerships in Hong Kong, Singapore, and many more to promote Bangkok as a global Fintech Hub.
Q: You will also sign an MoU with LHoFT Luxembourg later today. Could you tell us a little more about this collaboration?
A: Yes, Luxembourg House of Financial Technology. Like our partnership with Fintech Australia, we support global fintech collaboration and innovation. Luxembourg’s initiative, supported by GDP funds, offers a competitive platform for fintech players across the region, such as Indonesia, Laos, Thailand, and the Philippines. This competition will provide different startups with funding and accelerator opportunities, and I will also be a judge during the competition.
Q: How can individuals outside of the fintech industry contribute to the Association’s mission
A: Some of our members in the Thai Fintech Association are not directly related to the fintech industry, such as law firms. Beyond the fintech companies, we have worked closely with the academics within our committees and members. We recently went to deliver classes for the Master’s and Bachelor’s students at KMITL University, a top school in Thailand.
Q: Where do you see the Association in 5 years?
A: Honestly, I’m looking for a successor to take over as President, as I’ve been doing this for three years. Originally, I planned for four years, but it looks like it’ll be closer to six or five years, which is fine, but no longer than six. It’s time to start thinking about assembling a new team. We must focus on generating more sustainable revenue instead of relying solely on our startup methods. Collaborating closely with the government and other parties could help us secure grants or support.
Other associations have support and grants from their governments and regulators. We haven’t had the same level of support, which limits our capacity to grow our team. Balancing our TFA responsibilities with our full-time jobs is crucial, especially for those not involved in startups. Finding that balance becomes even more important if you work for a large multinational company.
Looking ahead, I see the Thai Fintech Association continuing to play a pivotal role in shaping Thailand’s fintech landscape. I am confident the association will remain a driving force for fintech advancement in Thailand and Southeast Asia.
In conclusion, the Q&A interview with Chonladet Khemarattana, President of the Thai Fintech Association, offers invaluable insights into Thailand’s advancing fintech landscape, with a mission to establish Bangkok as a prominent Fintech Hub in Southeast Asia.
Despite numerous challenges, Mr Chonladet remains optimistic and has his sights set on a sustainable future with increased revenue streams and close collaboration with government entities. The TFA continues to drive the nation’s economy and foster regional innovation and progress through expanding domestic and international partnerships.
Despite numerous challenges, Mr Chonladet remains optimistic about a sustainable future with increased revenue streams and a larger team. The TFA persists in propelling the nation’s economy forward through regional innovation and progress by cultivating domestic and international partnerships.
About The TFA
The Thai Fintech Association (TFA) is an independent, self-funded, non-profit organisation with a clear vision: ‘Transforming Finance for All.’ Founded in November 2016, TFA is committed to driving Thailand’s financial technology (Fintech) industry. They aim to reduce transaction costs, increase accessibility, promote fairness, and support local and regional fintech startups in expanding globally. The TFA are at the forefront of shaping Thailand’s fintech future.
