Central bank introduces open banking data initiative

The Bank of Thailand launched an open data initiative on Thursday for the financial system, allowing Thais to share their personal data with financial institutions in order to improve their access to financial services.
In partnership with regulatory agencies and financial institutions, the central bank’s “Your Data” initiative enables all financial organisations to connect and share data with one another.
Individuals and small and medium-sized enterprises (SMEs) can consent to the sharing of their personal data with financial institutions.
Partners in the project include the Finance Ministry, the Securities and Exchange Commission, the Stock Exchange of Thailand, the Office of the Insurance Commission and the Thai Bankers’ Association.
The open banking data initiative is scheduled to become operational in 2026, according to the regulator.
Speaking at the Your Data event hosted by the central bank on Thursday, central bank governor Sethaput Suthiwartnarueput said regulators are focused primarily on data security in compliance with the Personal Data Protection Act as part of the open banking programme to safeguard consumer data.
Any data sharing requires the explicit consent of the individual consumer.
Mr Sethaput said the open banking data project will enhance convenience, speed and security for consumers when applying for financial services.
More comprehensive data will reduce operating costs and credit expenses for financial institutions, making it easier for consumers and SMEs to access loans and other financial services at more affordable rates, he said.
In his keynote speech at the event, Finance Minister Pichai Chunhavajira said elevating the financial economy through data will be a game changer, enabling people to access more financial services at costs that accurately reflect real risks.
“The Your Data initiative will lead to the advancement of the Thai economy towards a digital economy and increase the efficiency of various activities,” he said, with data scattered across multiple organisations consolidated in one place.
This will benefit data utilisation, allowing small-scale individuals and SMEs to access credit more easily, manage their lives better and open opportunities for businesses to develop various financial products, while the government can use public data to design targeted measures that will effectively assist the people, said Mr Pichai.
He said in the financial sector, data is at the core of improving financial services, helping to narrow the financial gap and address issues such as high interest rates that exceed the risks of borrowers, as well as the problem of insufficient savings after retirement.
For financial service providers, data will improve risk assessments of customers, enabling financial institutions to be more confident in extending credit at interest rates that accurately reflect the risk, said Mr Pichai.
“This project can reduce the gap in financial services, as some groups are still unable to access these services. It will meet the needs of low-income individuals and SMEs that struggle to access financial services, ultimately leading to a digital economy,” he said.