In recent years, the financial services industry in Thailand has been undergoing significant transformation, driven by the need for digital innovation and efficient financial software solutions. As banks and financial institutions strive to stay competitive, the demand for advanced financial software development has surged. Adopting digital solutions has allowed banks to cater to a broader audience, including those in rural areas who traditionally had limited access to physical bank branches. Through online services, these communities can now perform transactions without needing to travel long distances.

Moreover, the sector has focused on appealing to younger, tech-savvy consumers who prefer the convenience of digital banking. Features like mobile transactions and QR code payment systems have become standard offerings as banks strive to meet evolving user expectations.

While Bangkok has long been the epicentre of Thailand’s financial sector, a new trend is emerging—banks are increasingly looking north to Chiang Mai as a strategic offshore development hub for software outsourcing.

Chiang Mai’s Rise as a Tech Hub

Chiang Mai, once known primarily for its cultural heritage and scenic landscapes, is rapidly transforming into a vibrant, tech-savvy city. In the past decades, Chiang Mai’s development has accelerated, driven by government initiatives and private investment. The establishment of Chiang Mai University in 1964 marked a significant milestone, as the university became a hub for education and research in northern Thailand, attracting students and scholars from across the country.

In the late 2010s, the Thai government designated Chiang Mai a “smart city” to boost the development of its technological infrastructure and industry. Over the past decade, the city has seen an increase in software developers, tech startups and IT professionals. Educational institutions like Chiang Mai University have been instrumental in this transformation, producing a steady stream of graduates with strong technical skills.

Chiang Mai has since gained international recognition as a destination for digital nomads. The city’s tech communities and coworking spaces provide a collaborative environment where innovation thrives, making it an attractive destination for financial software development, especially offshore development services. Tech-focused events and conferences have further solidified Chiang Mai’s reputation as a growing tech hub where cutting-edge financial software solutions are developed.

Why Bangkok-Based Banks Are Looking North

Cost Efficienc

One of the key advantages and primary reasons Bangkok-based banks are turning to Chiang Mai for their financial software development needs is that it’s significantly more cost-efficient. The lower cost of living in Chiang Mai translates to lower operating expenses for businesses. Office space, utilities and salaries for tech professionals are more affordable in Chiang Mai than Bangkok, making it an attractive option for banks looking to optimise their budgets without compromising quality.

Skilled Workforce

Chiang Mai boasts a growing pool of highly skilled developers and IT professionals. The city’s universities and technical colleges have adapted their curricula to meet the demands of the digital age, producing graduates who are well-versed in the latest technologies and programming languages.

Quality of Life

The quality of life in Chiang Mai is another factor drawing tech talent to the city. With its relaxed atmosphere, lower living costs and proximity to nature, Chiang Mai offers a work-life balance that is hard to find in a bustling metropolis like Bangkok.

Growing Expat and Professional Community

Chiang Mai has also attracted professionals from across Thailand and abroad, further enriching the talent pool for offshore software outsourcing and development services. This has created a dynamic and multicultural environment that supports innovation and collaboration. The city’s professional networks, meetups and coworking spaces offer valuable opportunities for knowledge exchange and partnerships. This strong professional community provides access to global perspectives and expertise.

Strong Infrastructure

The city offers reliable, high-speed internet connectivity, which is critical for seamless communication and collaboration between offshore teams and their clients to ensure that development projects can proceed without interruption. Chiang Mai offers a wide range of modern office spaces and coworking environments equipped with state-of-the-art facilities designed to cater to the needs of tech companies.

Chiang Mai is easily accessible from other parts of Thailand with well-maintained roads and an international airport. As an offshore location for establishing an Offshore Development Centre (ODC) for Bangkok, Chiang Mai is merely an hour’s flight away, making it easily accessible. Additionally, Chiang Mai’s traffic is much better than Bangkok’s, allowing people to spend significantly less time commuting and more time being productive.

Case Studies: Success Stories of Financial Software Development in Chiang Mai

Several banks and financial technology companies have benefitted from outsourcing their financial software development to a Chiang Mai-based offshore web and mobile app development company.

Banking

A well-known bank in Thailand urgently sought dedicated developers for their securities financial services. Manao Software provided seasoned senior developers with expertise in financial software development. Given a tight timeline, Manao Software successfully conducted swift maintenance of existing systems and internal applications and facilitated the launch of a new finance app. Consistent onsite and after-hours support resulted in productive collaboration, improving service delivery and operational efficiency.

E-Commerce

Manao Software established an Offshore Development Centre (ODC) for the fintech start-up Anyday, to launch a Buy-Now-Pay-Later solution for e-commerce within schedule and budget. This service offers consumers payment flexibility and provides merchants with more sales opportunities. Applying the latest development technologies, such as ASP.NET Core, Azure, Angular, React Native, Docker and Kubernetes, our dedicated team at Manao’s ODC, continues to work on new feature development and provide product support on Anyday’s custom mobile and web application and backend operations.

Blockchain

Token X, an innovative company specialising in tokenisation solutions using blockchain technology, chose Manao Software’s dedicated team, including mobile and web developers, QA testers, UX designers, software architects, project managers and business analysts to support key development areas aimed at enhancing user experience on the Token X platform and improving its blockchain capabilities.

Want to learn the benefits of partnering with an offshore app development company? Check out Part 2: Chiang Mai, A Strategic Offshore App Development Hub for Banking & Finance