The new service will mitigate risks in the payment system and improve the efficiency of the process between the capital market and commercial banks, while aligning with the government's National e-Payment Roadmap. Moreover, investors can enjoy ease of use by choosing their existing bank accounts for the service.
SET President Pakorn Peetathawatchai said daily interbank payments in the Thai capital market currently amount to around THB 8 billion (approx. USD 260 million). The interbank payment system, launched by SET subsidiary FinNet Innovation Network Co., Ltd., will provide greater convenience for investors. It will also alleviate the cash management burden of intermediary institutions and mitigates payment risks in the banking system, underlining the SET's vision "To Make the Capital Market 'Work' for everyone.
"At present, the payment service for the capital market services 31 securities companies and 12 commercial banks. SET, in the next stage, plans to discuss with operators about extending the service to cover the full range of securities payments including dividend payments and mutual fund trading," added Pakorn.
Association of Securities Companies Chairman Pichet Sithi-Amnuai said with the volume and value of securities transactions soaring, it was important to improve the payment system to lower obstacles and increase efficiencies, adding that it will also be a boon to cash management for all parties including investors, brokerage firms and commercial banks.
The new system was made possible through collaboration of the Ministry of Finance, the Bank of Thailand, the Securities and Exchange Commission, securities companies, commercial banks, the Association of Securities Companies, the Thai Bankers' Association, the Association of Investment Management Companies and the Custodian Club.