The impacts of digital financial innovation on the profitability performance of the finance industry groups listed on the Stock Exchange of Thailand

Abstract

This study examined and compared the effects of digital-era financial innovation on the profitability of firms in the financial sector listed on the Stock Exchange of Thailand during 2562-2567. The sample comprised 43 listed companies, and the analysis was based on annual financial statements and annual registration reports (Form 56-1). The findings indicated that financial innovation significantly affected profitability, particularly during 2565-2567, a period marked by accelerated digital transformation. Digital payments and artificial intelligence (AI) had statistically significant positive effects on profit efficiency at the 0.05 level by increasing the proportion of fee-based income and reducing the expense-to-income ratio. By contrast, blockchain technology did not yet have a significant effect on profitability, likely because it remains in an early investment stage and requires high infrastructure costs. Comparative analysis across business groups showed that the banking sector demonstrated significantly greater adaptation to, and benefit from, digital innovation than the securities and insurance sectors. These findings highlight the uneven impact of financial innovation across segments of Thailand’s financial industry.