SawasdeeShop Co., Ltd, branded as DeeMoney, Thailand’s leading and fastest growing fintech company specializing in cross-border payments, recently announced its preparation to transform into a fully-fledged independent neobank with the upcoming launch of licensed multi-currency e-wallet services in Q1 2023. DeeMoney’s decision to expand its financial product offering and become a neobank responds to the changing demands of Thai and international customers who now prefer to do everything, including banking, online. With a full suite of licenses that will see DeeMoney become Thailand’s first independent neobank, DeeMoney also announced its ultimate mission to evolve into a digital challenger bank (DCB) when the Bank of Thailand sets out the requirements in the coming years. The company has strategic plans to make breakthroughs in the neo-banking segment, which is expected to show revenue growth of 39.1% in Thailand and 38.2% in Southeast Asia in 2023.
DeeMoney was incorporated in 2017 with a paid-up capital of 200 million baht. With an average annual growth rate of 300%, the company offers money transfer and currency exchange services for individuals and businesses through its DeeMoney Neo mobile app and the Dee Business Portal. These services allow inbound and outbound money transfers at flat fees with no hidden landing fees to 64/43+ countries. DeeMoney, Thailand’s largest non-bank cross-border money transfer service provider, has built a healthy ecosystem of business partners, vendors and leading technologies based on its cross-border payment platform over the past four years. The firm foresees substantial growth with more than 50 billion baht processed in 2022.
Mr. Aswin Phlaphongphanich, CEO and co-founder of DeeMoney (Sawasdeeshop Co., Ltd.), said, “Neobank is a relatively new concept for the Thai market. Amid the growing popularity of digitally-enabled financial services, we see great potential for this new type of bank. With our full banking license, we aim to lead the fintech industry as Thailand’s first independent neobank.” DeeMoney has a full suite of licenses: Money Changer License, Money Transfer Operator License, E-Money Transfer License and E-Money License. DeeMoney’s new e-wallet services and its Payment platform as a service (PaaS) with cross-border payment processing capability will be available to the public early next year. The new offerings will allow its customers to make multi-currency international payments with just a few clicks on the website and app. As part of DeeMoney’s neo-banking product stack, the company will launch a comprehensive range Register, send and receive solution for comprehensive international financial services.
Neobanks (or internet-only banks) are banks that have no physical presence in the real world. The term “neobank” was first used in 2016 to describe fintech companies that challenged traditional banks and disrupted face-to-face branch banking with their digital financial services. Neobanks were created in response to a recent surge in demand for a full digital banking experience without the need to visit physical banks. “Unlike most market players who operate financial services using their partners’ licenses, DeeMoney develops multi-currency services and a PaaS platform through the company’s licensed licenses, making it an independent financial services provider“, explained the CEO.
According to the Boston Consulting Group (BCG), two-thirds of neo and challenger banks in Asia are either financial institutions or consortia-backed players. However, DeeMoney still sees opportunities for independent fintech companies to seize a position to serve the growing digital banking market. As part of its commitment to openness and cooperation rather than competition, DeeMoney’s independent platform has resulted in constant business model innovation that benefits its growing customer base and partners. The development of its financial platform ensures that DeeMoney manages future upward scalability, ensuring the business is well-positioned as a cutting-edge critical infrastructure player in the fintech industry.
Positioned to become Thailand’s first independent neobank, DeeMoney’s first digital banking platform will offer borderless e-wallets by early 2023. The e-wallets will target expat-focused individuals and businesses, digital nomads, digital savvy users, young entrepreneurs and MSMEs. The Thai company said there is a huge market for neobanks in Thailand and the region. According to the Boston Consulting Group (BCG), Southeast Asia, a region of over 660 million people, is rapidly becoming the next global digital consumer credit mega-market. The region hosts a large pool of digital nomads while also hosting one of the most diverse socio-cultural customer segments in the world. By 2030, 75% of the SEA population will be made up of millennials and Gen Z, and 91% of purchases are expected to be made through digital payment.
Additionally, Southeast Asian consumers are among the most digitally engaged in the world. Across Southeast Asia, more than 70% of millennials are online. In terms of digital payments, most retailers in Thailand and Singapore, for example, already have well-established real-time payment (RTP) systems moving towards a cashless society. Global data analytics company Statista reported that digital payments had become the largest fintech segment in Thailand, with a total transaction value of USD 29.130 billion in 2022. Digital payment users in Thailand are expected to reach 46.10 million users by 2027. According to Statista, the neo-banking segment expected to post 39.1% revenue growth in Thailand and 38.2% in Southeast Asia in 2023. Southeast Government Agencies
Asian countries are also setting regulations and accelerating efforts to improve digital payments infrastructure and unleash the capabilities of non-bank fintech companies.
Mr. Aswin Phlaphongphanich said, “DeeMoney is poised to become an independent neobank with our new stack of licensed e-wallet systems and payment-as-a-service platform. We look forward to serving individuals, especially underbanked, underserved and digital nomads, as well as businesses and financial service providers who are looking for a lean and flexible financial ecosystem, allowing them to shorten time to market. market and minimize development efforts. As a neobank, we will continue to expand our digital product offerings to bridge the gap between traditional banking services and changing customer expectations for a single digital banking platform.
“Offering loan and lending services and charging interest is still beyond the reach of neobanks in Thailand. We will continue to strengthen our efforts to disrupt the conventional financial landscape and lead Thailand’s fintech industry through our ‘cooperation rather than competition”. Thanks to our strong network of local and global partners, service operators and banks, we will become a challenger bank in the future”, added the DeeMoney founder.
The DeeMoney CEO said the requirements for challenger banks in Thailand had not been set by the Bank of Thailand. However, when the time comes, the company will be ready to apply for a new license. In the meantime, the fintech company will continue to improve its digital platform and infrastructure while leveraging a new service system for lean operations and partner management. Under his 3D Strategythe company is going defend its leading position, differentiate stand out from the crowd with constantly improving products and disturb industry with scalable business model innovation. A nomad at heart, DeeMoney said it will deploy digital services to enable underserved people to connect the world with innovative financial technology.