iBank promotes the concept of trust, confidence, and sustainability.

Six state-owned banks unveil their strategic plans for 2026, continuing their mission to support government policies. Virtual banks are not competitors; they are preparing to develop technology to cope, moving forward with the use of AI to enhance the capabilities of banks and help people access financial services, while striving for sustainability.

Dr. Thaweelap Rittapirom, Director and Manager Islamic Bank of Thailand (IBank) It was revealed that 2569 will be another challenging year for the banking sector, amidst the fragile Thai economy, uncertainty from external factors, and the impact of natural disasters on people's purchasing power and financial stability.

However, this situation reflects an opportunity for the Islamic Bank of Thailand (iBank) to reinforce its role as more than just a typical financial institution, but as a specialized state financial institution ready to stand by the people and businesses in all circumstances.

“Under the vision of being a Sharia-compliant financial institution for sustainability, iBank needs to conduct its business prudently while managing risks appropriately. The key challenge in 2569 is to support customers in maintaining their businesses and lives amidst economic volatility, while developing financial products and services that are compliant with Islamic principles, accessible to both Muslim customers and the general public, and addressing the evolving needs of society, in order to create long-term stability and sustainability for the economy.”

For 2569, the Islamic Bank of Thailand will operate under the concept of “Belief + Trust + Future • Writing Our Future Together – Trust, Confidence, Sustainability,” aiming to move forward with readiness and confidence in Sharia-compliant principles, coupled with the appropriate use of innovation and digital solutions to enhance a transparent, fair, and accessible financial experience for all.

The bank prioritizes trust in all its dimensions, stable and sustainable growth, and collaboration with employees, customers, partners, and society to jointly design the future of Islamic finance in Thailand through four main strategic goals:

Strategy 1: Strengthening financial stability according to Sharia principles.Shariah Banking Excellence

The bank aims to elevate its role as the primary bank for Muslims, while also serving as an alternative banking option for all segments of the population. It leverages Islamic banking principles as its value-based strength, emphasizing transparency, fairness, and non-exploitation—universal principles accessible and acceptable to the general public.

Within this framework, the bank plans to enhance Sharia governance in Thailand by establishing a Center of Excellence in Islamic Finance. This center will serve as a hub for knowledge on Sharia-compliant finance, the development of financial products aligned with the modern economic context, and comprehensive halal business consulting services, catering to businesses ranging from small and medium-sized enterprises (SMEs) to large corporations.

“The center will play a crucial role in bridging knowledge of Islamic finance with the real business sector, supporting Thai entrepreneurs, both Muslim and non-Muslim, to upgrade the standards of their products and services, access appropriate funding sources, and systematically expand their potential into the halal market both domestically and internationally. This will strengthen the bank's financial position while creating a positive long-term impact on the economy and society.”

Meanwhile, the bank is focusing on expanding its customer base in strategic areas through the “Southern Sandbox” model in five southern border provinces. This is driven by Al-Hajj and Umrah deposit products to expand the Muslim customer base and extend to other products, aiming to capture at least 16% market share in the area and increase the proportion of loans to Muslim-related businesses to 42% of the total loan portfolio, reflecting the long-term relationship between the bank and the communities in the area.

Strategy 2: Upgrading Digital Services

Building on its success from 2568, the bank developed the ibank Application, an online banking service via smartphone (mobile banking) integrated into the Paotang application. This is the first Shariah-compliant financial institution application in Thailand, resulting in exponential user growth, more than doubling from 2567. This reflects the public's confidence and acceptance of transparent, fair, and easily accessible financial services.

By 2569, the bank will focus on developing a fast, modern, and seamlessly integrated digital system to increase the proportion of transactions through digital channels. This will be coupled with improving operational efficiency and managing costs appropriately to support sustainable long-term growth.

Strategy 3: Building Sustainability (Sustainability)

The bank prioritizes quality growth based on Sharia principles, which have long framed sustainability in the dimensions of justice, social responsibility, and non-aggression. The widely used ESG framework is therefore a contemporary concept that aligns with existing Sharia principles and reflects the same values ​​in governance, economics, society, and the environment.

In 2569, the bank reaffirmed its commitment to being a financial institution operating on the basis of social and environmental responsibility under the principles of transparent governance (ESG with Shariah). It laid the foundation for policies coupled with concrete actions to elevate the organization to international standards. Furthermore, it will support the halal industry and provide assistance to vulnerable groups nationwide.

The bank has set key objectives to drive stable and sustainable growth, including:

• Net loan growth is projected to increase by more than 10 percent from a base of 2568.
• Increasing the proportion of low-cost deposits (CASA) to at least 30 percent in order to strengthen the quality capital base.
• Managing non-performing assets (NPFs) to an appropriate level, which may involve considering transferring or selling them to asset management companies, should be coupled with proactive measures to prevent and resolve credit problems.
• Developing a diverse range of sustainable finance products to support green businesses and connect funding to environmentally and socially responsible projects, fostering sustainable growth alongside customers and society.

Strategy 4: Expanding international cooperation.

The bank plans to enhance its international connectivity, particularly with the Gulf Cooperation Council (GCC) countries, by strengthening its network of cooperation with global correspondent banks, such as Al Rajhi Bank, the world's largest Islamic bank, as well as other strategic partners, to facilitate efficient international trade, investment, and financial transactions.

Furthermore, the bank prioritizes developing foreign exchange transaction services, particularly in currencies of Muslim countries such as the Saudi Riyal (SAR), to support trade, investment, tourism, Hajj and Umrah pilgrimages, and capital flows between Thailand and trading partners in the Middle East. This will enhance financial flexibility and expand economic opportunities for Thai customers and businesses on the international stage.

look AI is a tool.
Helping people access financial services.

Dr. Taweelap stated that the introduction of branchless commercial banks (virtual banks) is a significant development in Thailand's financial infrastructure, reflecting technological advancements and the direction of modern financial system development. From a banking perspective, the existence of virtual banks is beneficial and will significantly increase opportunities for the public to access financial services (financial inclusion).

The bank is confident that the Ministry of Finance, the Bank of Thailand (BOT), and related agencies have carefully considered the benefits and impacts on all sectors within an appropriate regulatory framework, consistent with the context of Thailand, which is currently in the process of upgrading the readiness of its financial system, which will help to gradually move towards financial liberalization.

“iBank believes that following the entry of Virtual Banks, the market will face increased competition in the initial period. However, long-term business outcomes depend on several key factors, such as customer confidence, risk management capabilities, loan portfolio quality, as well as technology costs and regulatory compliance. These factors may force some operators to adapt their business models or may prevent them from expanding their operations as planned.”

However, the bank has continuously prepared itself to cope with the competition by accelerating the development of the ibank application within the Paotang application to complete all phases according to the plan. This ensures that the public has sustainable access to financial services that are transparent, fair, and appropriate to the religious and social context.

With its clear commitment to Sharia-compliant services—a value that technology alone cannot replace—the bank focuses on providing services in a "Digitalized with Connecting Hearts" format. This integrates the convenience of digital technology with the care and attention of its employees, building confidence for customers in every transaction.

“The bank is confident that the changing financial landscape brought about by the emergence of Virtual Banks will be a significant opportunity for iBank to demonstrate its role as a sustainable bank that leverages technology to improve the quality of life for people, while remaining steadfast in its sound principles and fundamental values.”

Dr. Taweelap further stated that, in the context where society and the business sector have diverse understandings of the role of AI—including opportunities, concerns, and impacts on work—iBank views AI as an enabler, not a competitor to humans. Rather, it is a technology that must be used within an appropriate regulatory framework.

“The bank doesn't aim to be a leader in AI adoption merely for image competition, but focuses on the smart adoption of AI and digital technologies—selecting only technologies that create real value and benefits. The primary goal is to improve operational efficiency, reduce redundant processes, and make financial services and loans more accessible and equitable for the public, especially our Muslim brothers and sisters and small business owners who may be overlooked by traditional AI systems.”

In practice, the bank will begin using data analytics and developing it into AI to support internal processes and increase automation, especially in risk management and credit assessment. The bank will focus on Inclusive AI to analyze alternative data, helping small business owners or those with incomplete income documentation access funding more easily, and Shariah Compliance AI to verify the accuracy of financial transactions and contracts according to Sharia principles, thus speeding up the loan approval process while maintaining rigor and accuracy.

The bank also places great importance on AI Governance, studying a clear regulatory framework for AI use that covers transparency, fairness, explainability of model results, personal data protection, and prevention of algorithmic bias. This will be used to establish policies ensuring that AI use aligns with laws, government regulatory standards, and ethical financial principles, consistent with Sharia principles that emphasize fairness and non-exploitation.

Furthermore, the bank is open to collaborating with technology partners, both domestic and international, to access suitable solutions without having to invest in development entirely within the company. This enhances flexibility and cost management efficiency, and aims to increase the proportion of transactions through digital channels to at least 65% of the total transaction volume.

“For iBank, AI will not replace people but will enhance the capabilities of our personnel, enabling them to work better, reducing the burden of paperwork and data, so that employees can dedicate their time to providing advice, care, and building strong relationships with customers, which remains a core principle of Sharia-compliant banking.”

Follow and read other columns in the February 2569 Bank Finance Journal, Issue 526, in digital format: https://goo.gl/U6OnIi

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