Fintech: The decisive factor for the emergence of financial startups in Thailand — Understanding the system that transforms the market

Why Fintech Has Become a Game Changer for Startup Businesses?

For those following the number of financial startups in Thailand, you might notice where this trend is coming from. It’s right there — Financial Technology (Fintech) is not just a buzzword of the time but a driving force that allows new businesses to challenge traditional financial systems.

Fintech is a combination of Financial and Technology — a system that leverages technology to improve financial transactions, from deposits and cross-border transfers to investments and currency exchanges. All of this is done via internet networks, saving time, reducing fees, and making access easier.

How Many Types of Fintech Are There? And Which Parts Are Relevant to Startups?

Looking deeper, fintech is not a single thing done in one area but is divided into 7 main categories, each creating opportunities for new startups to enter:

1. Banking Technology - Digital banking systems that enable transactions via mobile and QR code networks, allowing tech startups to design new experiences.

2. Crowdfunding - Community fundraising that enables SMEs and small startups to find funding sources without going through banks directly.

3. Cryptocurrency - Digital currencies and blockchain technology that are changing the world. Crypto startups like Bitkub have achieved major success.

4. Payment Technology - Cashless payment systems like True Money Wallet and QR code payments, clear examples of fintech integrated into daily life.

5. Enterprise Financial Software - Online accounting programs like Flow Account, allowing startups to manage all their finances independently without hiring professional accountants.

6. Investment Management - Investment platforms like Finnomena, demonstrating how fintech startups can open investment opportunities to the general public.

7. Insurance Technology - Digital insurance that reduces paperwork and complexity.

Why Have Thai Fintech Startups Achieved Success?

Companies like Bitkub, Finnomena, and Flow Account did not succeed by chance but as a result of:

Market Gaps: Traditional banks move slowly, charge high fees, and have complicated procedures — these are opportunities that startups recognize.

Lowered Technology Costs: Now, it’s no longer necessary to have huge budgets to build platforms. Startups can start small and expand.

Gradual Legal Adjustments: Licensing processes are becoming clearer, providing startups with a clearer pathway.

Bitkub is a good case study — entering the scene when Thais were thinking about investing in crypto, boosting adoption, and becoming Thailand’s top trading platform.

Finnomena created an investment platform accessible to everyone, with low fees and no need for large amounts of money to start investing.

What Issues Does Fintech Bring to Later-Entry Startups?

Advantages:

• Lower operational costs, fewer branches needed
• Easier customer access via mobile
• Reduced risks using proven technology
• SMEs can start with small investments

Disadvantages:

• Intense competition, new players constantly entering
• Financial stability — systems may be unstable if laws change suddenly
• Data security — risks of hacking and data theft
• Talent and specialized skills shortages

Thailand: A Fintech Arena Full of Opportunities and Challenges

What’s next for fintech and startups in Thailand? Three issues are currently hindering progress:

1. Thai laws are still restrictive — No clear regulations for issuing visas to foreign investors, limiting startups from gaining expertise from abroad.

2. Funding is still insufficient — Thai banks are reluctant to lend to startups due to high risks, and foreign funding requires complex registration.

3. Skills and human resources — Thailand still lacks developers, engineers, and fintech experts.

However, the role of fintech and startups in driving Thailand’s economy is no longer a future matter but a current reality. Both the government (Pao Tang) and the private sector are heavily focusing on this system.

Thailand may not grow as fast as Singapore or Hong Kong, but as fintech startups see Thailand’s potential and the government opens the door for digital nomads, it will be a game-changing moment.

Fintech is not just technology but a new world of finance — and startups are the ones building it.