FinTechON｜Thai Ma FinTech Analysis: Want to Enter Southeast Asia? Choosing the Right Country and Strategy is Key

At the FinTechON & AFA Asia Financial Technology Summit held in Taiwan on September 2, the presidents of the FinTech associations from Thailand and Malaysia shared the stage, providing in-depth analyses of the fintech, biotech innovations, and policy environments in their respective countries. From Thailand's universal QR Code to Malaysia's data infrastructure, opportunities in the Southeast Asian market are ready to unfold.

Thailand: From Street Vendors to Virtual Banks, FinTech is Flourishing

"In Thailand, even vendors selling sticky notes accept QR Codes." Chonladet Khemarattana, president of the Thai FinTech Association, shared during the meeting that the popularity of QR Codes and electronic wallets allows small and medium-sized enterprises (SMEs) to participate in the digital economy at a very low cost, forming a key driving force behind the rapid expansion of FinTech in Thailand.

QR payment has become a national movement.

QR Code technology is free and easy to operate, coupled with strong promotion from the government and private sectors, allowing street vendors to easily accept payments. This low-threshold digital payment environment creates a natural customer base for FinTech service providers.

New B2B business opportunities under cryptocurrency-friendly policies

Chonladet pointed out that Thailand's cryptocurrency policy is relatively friendly, as the government previously established multiple sandbox testing zones for cryptocurrencies and stablecoins to encourage innovative applications.

The B2B market has strong potential.

Especially in KYC/KYB services ( understand your customer/business ), in response to the compliance requirements of cryptocurrency trading, it has become an important entry point for collaboration with local and foreign fintech companies.

Virtual banks promote inclusive finance for SMEs

Currently, three virtual banking licenses have been issued in Thailand, primarily focusing on SMEs and personal loans. Government policies encourage these banks to develop digital inclusive finance, with particular emphasis on financial education and the accessibility of financing for small and medium-sized enterprises.

Foreign companies want to enter, joint ventures are key.

Chonladet emphasized that for foreign operators to successfully enter the Thai market, establishing joint ventures or deep cooperation with local financial institutions is almost a necessary condition.

AI and data become new weapons for credit decision-making

Although traditional banks still rely on collateral for lending, Chonladet pointed out that this also represents a huge growth opportunity for AI-driven credit scoring models and alternative data analysis services.

Telecommunications data is a new gold mine.

"In the future, whoever can master the data will dominate the SME financing market," he added, especially virtual banks that collaborate with telecom companies, which have already mastered a massive amount of user data and are expected to transform it into effective credit assessment tools through AI technology.

Malaysia: Transitioning from a Semiconductor Powerhouse to a Data-Driven Financial Ecosystem

Unlike Thailand, the focus of Anil Singh Gill, President of the Malaysian FinTech Association, is on data, enterprise services, and the upgrading of the manufacturing industry.

International cloud giants gather to build a data infrastructure hub.

Anil pointed out that international tech giants such as Amazon, Microsoft, and Oracle have invested in data centers in Malaysia, making the country a rapid hotspot for data aggregation and application in Southeast Asia.

Old ERP systems pose challenges, managing people is harder than managing technology.

Although hardware upgrades are rapid, Anil admits that ERP systems in the manufacturing industry are still generally outdated. Manufacturers often choose to overlay new solutions on existing architectures, resulting in low integration efficiency.

Internal resistance becomes the biggest barrier.

"The biggest challenge is not the technology, but human behavior," Anil said. Even if the tools are great, if the internal users reject them, it will be difficult to implement.

Cross-border FinTech services have potential, but it requires patience due to the long cycle.

The Central Bank of Malaysia is known for its flexibility and foresight, and the good regulatory environment allows cross-border fintech services such as payment, logistics finance, and data finance to have more room for development.

Long sales cycles, slow adoption in manufacturing.

Anil reminds that the speed of introducing new financial services in B2B or manufacturing industries is still relatively slow, often taking several months from negotiation to implementation, and foreign companies need to be mentally prepared for long-term operations.

Comparison of Thailand and Malaysia: Two Major FinTech Hotspots, Each with Its Own Strengths

Country Key Advantages Suitable FinTech Operators Thailand QR payment popularity, crypto-friendly policies, strong SME demand B2B fintech, KYC/KYB service providers, AI credit scoring Malaysia Mature data centers, manufacturing industry reforms, high cross-border potential ERP integration platforms, data analytics companies, cross-border payment services

The sharing at the FinTechON & AFA summit highlighted one point: Southeast Asia is not a one-size-fits-all market. To enter the local market, it is necessary to understand the policies, technological structures, and cultural habits of each country. Thailand focuses on rapid implementation and payment innovation, while Malaysia is more suitable for deepening enterprise services and cross-border business. Choosing the right market and the right partners is the winning strategy for FinTech to go overseas in Southeast Asia.

This article FinTechON｜Thai Mar FinTech Analysis: Want to enter Southeast Asia? Choosing the right country and strategy is key. First appeared on Chain News ABMedia.