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Thailand: Superrich forecasts exchange value uptick
Superrich Thailand, a leading local money changer, expects total money exchange value to grow by 20% this year and plans to increase investment in preparation for changes in technology and consumer lifestyles.
The projected 20% hike is below last year’s 43% growth in total money exchange value of 112 billion baht, said managing director for business development Sittharmanin Susamawathanakun.
The gross profit margin is expected at 20% of total exchange value in 2018, down from last year’s margin of 25%, she said.
“There is stiff competition from other currency exchange businesses and fintech in Thailand. Our challenge is how to deliver the best [foreign exchange] rate to customers,” said managing director Thanattzalin Susamawathanakun.
Though the company’s business is still supported by positive factors such as Thailand’s tourism boom, such growth momentum is being challenged by a change in consumer behaviour, said Ms Thanattzalin, citing how some consumers opt for credit cards instead of currency exchange.
She said currency exchange no longer depends on seasonality as was previously the case during tourism high season or school breaks, with consumers gradually engaging in currency exchange whenever there are foreign exchange rate gains.
The company has no digital currency plans at this time as the Bank of Thailand has asked commercial banks and money changers for their cooperation in abstaining from them, while bitcoin’s legal status remains unclear, said Ms Thanattzalin.
“Our goal is to provide the best rate and we want customers to be safe from risks,” she said.
Superrich Thailand is studying how to use fintech to collect and distribute data to help keep the exchange rate as close as possible to the market rate, since most financial data is connected globally, said Ms Thanattzalin.
The timely and swift adjustment will bring the best rate offers as well as customer satisfaction, she said.
The company plans to invest in technology and software to boost call centre, social media and website efficiency.
Source: https://www.bangkokpost.com/business/finance/1461098/superrich-forecasts-exchange-value-uptick