Thai banks have shown a robust recovery with decreased credit costs and improved margins, as highlighted in Fitch Ratings’ 2024 briefing held in Bangkok today discussing the current Thailand and Regional Financial Sector Outlook. The event emphasized the banks’ efforts to enhance services and embrace digitalization to enhance their overall performance.
During the briefing, Jindarat Sirisithichote, Associate Director of Financial Institutions at Fitch Ratings (Thailand), mentioned that the positive momentum in Thai banks’ performance is expected to persist in 2024. However, she also pointed out challenges for further improvement, attributing them to Thailand’s ongoing gradual economic recovery and the possibility of reaching peak interest rates. Despite this, Thai banks are still lagging behind regional counterparts, posing strategic challenges in the medium term, which may prompt them to intensify their expansion overseas.
Vorapak Tanyawong, Vice Chairman of Finansia X Public Company Limited and Senior Advisor at McKinsey, highlighted in his presentation on the transformation of Thailand and regional banks that the banking sector is facing a critical moment where adaptation and innovation are no longer optional but essential for survival. His presentation underscored key areas where successful transformative banks excel in performance, customer service, technology integration, organizational cultures, and risk management.
