Issue 20

The advent of the technologically savvy Generation Y is fast changing the way financial institutions operate.

The banking world is changing. Long gone have the days when you used to queue endlessly in your local branch to gain access to your own money. Soon the ATM could become a thing of the past too. Now a single mobile wallet can bring all your financial transactions direct to your smartphone.
Developed by global software giant AMDOCS, the virtual wallet enables a mobile subscriber to buy services and goods from a network of merchants that accepts mobile payments.

“The most common usages are pre-paid recharge, bill payment and buying mobile value added services,” says Jonathan Kaftzan, Head of Product Marketing for Mobile Financial Services at Amdocs. “However, it can be used for other banking and financial services as well, such as money transfers, loans and insurance.”

Kaftzan believes this financial service will appeal to two customer groups – the unbanked and Generation Y.
The former consists of the 17% of adult Thais who do not have a formal bank account, according to Kaftzan. He believes AMDOCS’ wallet could present an attractive means to access financial services. “For them, a mobile phone is the best alternative for a bank account – it’s accessible, convenient, affordable and secure,” he says.

Generation Y refers to the millennial children – the 18-30 year olds who are mobile, social media enthusiasts and smartphone users. “For this generation, mobile is by far the most convenient way to pay for services and goods, send money and consume other banking services,” he says. “This is a generation that identifies with cashless economy and is more willing to make cashless transactions. Nearly 80% of the total population in Thailand is between 18 to 35 years of age.”

Currently, AMDOCS is working with the True Corporation in Thailand. “Our solution is being used by True as the backend system to offer Mobile Wallet services to their customers,” Kaftzan says. “We work very closely with True to make sure that their strategy and plans are supported by our technology and services.”

Kaftzan claims that Thailand is one of the fastest growing mobile financial services market in the world. “According to the Bank of Thailand 6.1% of financial transactions are made through mobile phones with 19.3% growth in Q1, 2014,” he says.
He also believes that with the advent of the ASEAN Economic Community at the end of 2015, Thailand could become the standard bearer for other countries in the region to follow. “It has the highest percentage of Internet users, social media users, and young population who are quick to adopt new services,” he says. “In this context, Thailand is a gateway to new technology and service adoption in the ASEAN region.”

Words by Mark Bibby Jackson