The United Kingdom and the Bank of Thailand (BoT) have reportedly committed to a Memorandum or Understanding (MoU) on financial services, in order to support inclusive economic growth and development.
The UK government and the BoT signed the MoU on August 7, 2020, according to a release.
The two countries have entered a strategic partnership on financial services which aims to support Thailand’s inclusive economic recovery (following COVID-19) and “green growth.” The plans are consistent with the Sustainable Development Goals (SDGs), which most countries have failed to achieve.
Under the terms of the MoU, the UK and the BoT have committed to working towards implementing stricter accounting standards. They’ve also agreed to enhance corporate governance and maintain greater transparency.
Both nations will also focus on initiatives aimed at accelerating Fintech adoption. These projects will support an ecosystem that will enable improved access to key finance and business opportunities for Thailand’s Fintech sector. Per the MoU, the UK and BoT will support sustainable finance; while aiding in the development of a more resilient financial system.
As noted in the release, the collaboration is an initiative that’s part of the United Kingdom’s ASEAN Economic Reform and ASEAN Low Carbon Energy Programs.
The collaboration aims to share relevant knowledge and expertise on emerging financing developments, regulatory policies, and Fintech products and services. The partnership will focus on supporting financial inclusion and will aim to address issues related to climate change, while working on projects that serve the disadvantaged members of society.
Veerathai Santiprabhob, Governor of the Bank of Thailand stated:
“Fintech can enhance financial inclusion by scaling up accessibility and convenience with product offerings that can be tailored to [each] individual’s needs. Technological advancement in financial services has prompted regulators to embrace an organizational culture that nurtures innovation.”
However, this has also worsened the negative effects of climate change which must be addressed, Santiprabhob noted. He added that financial institutions need to work on reducing the risks involved with issuing loans via lending platforms.
Santiprabhob further noted:
“Our cooperation [aims to] preserve financial stability as we pursue our journey of digital transformation. … it will [also] facilitate financial service providers to better embed the concept of sustainability, particularly the environment aspect, into their organizational culture and business [practices.]”
H.E. Brian Davidson, the British Ambassador to Thailand, remarked:
‘This MoU comes at a critical moment as we seek to manage and recover from the Covid-19 pandemic. Financial services can help deliver stimulus that will create jobs; support businesses; and empower societies to be more resilient by transforming economies from grey to green.”
He added:
“Fintech has been critical to the lives of so many during the pandemic – facilitating everything from government payments to the population to online deliveries. Consequently, I’m very proud that we are signing this MoU with the BoT to facilitate cooperation through the Prosperity Fund ASEAN Economic Reform Program and the ASEAN Low Carbon Energy Program.”