Digital bank statements begin

Digital bank statements begin

Financial institutions collaborate with the BoT

Banks on Monday launched a digital bank statement service (dStatement) to provide greater convenience to customers.

The initiative is a collaboration between the Bank of Thailand (BoT), 11 financial institutions under the Thai Bankers Association (TBA) and the Government Financial Institutions Association (GFA).

The service is a financial information exchange for sending and receiving bank statement data directly between banks in a machine-readable digital format.

The service allows customers who need to submit bank statements as supporting documents to request and send their bank statement data directly from one bank to another using their own mobile banking apps or through other channels.

Initially, the service will be provided by six banks and five more banks will offer the service later in the first half of this year.

Ronadol Numnonda, BoT Deputy Governor for Financial Institution Stability, said the dStatement service is significantly more efficient than the traditional version.

With the digital service, customers do not need to visit a physical branch to request a paper bank statement, providing more convenience, speed, security and lower costs for banks and customers. he added.

The fee cap for the dStatement service is set at 75 baht per account, compared to 100-200 for the existing paper bank statement, depending on the financial institution and the length of the paper bank statement requested.

The central bank expects around 500,000 to 1 million loan applications, representing 5-8% of total loan applications in 2021, to apply for the count in the first year of service.

According to these forecasts, the global banking system could save 250 to 500 million baht in operating costs compared to transactions on paper bank statements.

If demand increases to 50% of total loan applications, it would save 2.5 to 3 billion baht in operating costs.

The market mechanism and competition between financial institutions should lower the cost of this new financial service.

“The dStatement is the first step in an open data ecosystem and it will lay a solid foundation for the transformation of Thailand’s financial sector from a traditional channel into a digital-compliant platform for the digital age,” Mr. Ronadol.

The dStatement will allow low-income people to better access financial sources.

At the same time, the BoT and financial institutions will also promote consumer financial literacy, especially in data privacy for digital financial service.

In addition, Ronadol said the BoT plans to expand dStatment to cover other services, from non-banking, non-financial and corporate services, to use in the government sector. For example, the dStatement can be extended to cover a visa application.