In Vietnam, consumers use OnePay to make financial transactions. Wing in Cambodia, BCEL in Laos and Wave Money in Myanmar provide instant payments and money transfers through mobile phones to those without bank accounts. Last but not least, Thailand’s PromptPay provides consumers with one of the most efficient fund transfer services in the region, using mobile phone or citizen ID numbers as a proxy for bank account numbers. The Bank of Thailand also set up a “regulatory sandbox” framework to support development of financial innovations. This framework allows innovators to test their products, and regulators to develop necessary regulatory requirements before innovative products are launched to the public. Nevertheless, embracing financial technology at the domestic level is not enough. We need to create linkages among domestic payment platforms and innovative financial products to facilitate cross-border financial activities. Thailand has been active in enhancing inter-platform linkages. On a bilateral level, Thai banks and FinTech firms are developing cross-currency remittance services based on blockchain technology. At the regional level, Thailand’s national interbank payment system has recently been selected to be the hub of the Asian Payment Network (APN). Ladies and gentlemen, As we all know, FinTech comes with new risks. Cyber threats, in recent years, have increased dramatically in frequency, sophistication and impacts. This leads to my second area of cooperation. AFCA members may wish to cooperate to build immunity to lessen the impact of unwarranted risks. Among others, AFCA could serve as a forum to ensure that cooperation on cyber security is brought to fruition.

Costs of cross-border financial transactions remain high, and there is limited usage of regional currencies for cross border transactions. There is also limited presence and penetration of regional banks in each country. In this regard, I see many opportunities for Asian banks to play increasing roles in connecting businesses within our region. Enhanced regional financial connectivity will not only support trade and investment activities, but can also promote productivity, immunity, and financial inclusivity in Asia. I therefore welcome and fully support AFCA in its endeavor to promote greater financial cooperation. This forum will help ensure that our region can reap the full benefits of increased financial connectivity. Greater regional economic integration can then reach its full potential and harness the dynamism of this region for sustained shared benefits. Currently, the Bank of Thailand has placed much emphasis on strengthening financial connectivity within the region, particularly with ASEAN-5 and our neighbouring CLMV. Let me highlight our two projects that have strong potential to connect people and businesses in the region more efficiently by providing better access, wider choices, and lower costs of financial services.     First, ASEAN central banks are working towards achieving the goals of the ASEAN Banking Integration Framework. For example, the opening of Qualified ASEAN Banks or QABs would establish important cross-border banking networks, which will help increase efficiency of financial services across the region. At present, the Bank of Thailand is in the process of negotiating QAB agreements with the authorities of Malaysia, Myanmar, Indonesia, and the Philippines.