Thailand
Bank of Thailand treads gently on fee charges
The Bank of Thailand will take into account access to banking services and familiarity with technology before making a decision on banks’ proposal to charge fees for cash transactions at branches and ATMs, a senior official says.
The central bank must also consider the readiness of financial services across the country, said Chantavarn Sucharitakul, assistant governor for corporate strategy and relations.
“It’s an issue that must be pondered and assessed thoroughly,” she said.
Local media recently reported that banks have talked to the central bank about charging for cash transactions made at branches and ATMs in a bid to discourage customers from using traditional payment methods.
According to the proposal, banks might initially reduce the frequency of free cross-bank transactions via ATM from the current five times allowed per month.
The plan to charge fees for cash transactions at branches and ATMs has stoked concerns and a public outcry, even as digital banking transactions soar.
Predee Daochai, chairman of the Thai Bankers’ Association and president of Kasikornbank (KBank), has also rushed to soothe jitters, saying the proposed fees for cash transactions have not been finalised.
KBank is the country’s biggest mobile banking service provider with nearly 10 million users, followed by Siam Commercial Bank (SCB) with 7.9 million as of September.
Bangkok Bank, the country’s second-largest lender by assets, aims for 7 million users on its mobile banking app, Bualuang mBanking, by year-end and 10-11 million next year.
After banks waived their digital transaction fees in late March, the amount of transactions on the platform has surged.
Take SCB, for example: the bank’s digital channel accounted for 53% of its payments, money transfers and top-up transactions at the end of September, up from 42% in June, 33% in January and 14% in January 2017.
SCB’s ratio of payments, fund transfers and top-up transactions at ATMs fell to 41% at the end of September from 49% in June, 54% in January and 69% in January 2017.
For brick-and-mortar branches, the ratio slumped to 6% at the end of September from 9% in June, 13% in January and 17% in January 2017.
Source: https://www.bangkokpost.com/business/finance/1589062/bank-of-thailand-treads-gently-on-fee-charges