# Muangthai Capital CEO Defends Microfinance Role in Thailand Parithad Petampai highlights the social impact of Thailand's largest microfinance institution. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-07-13 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/25f87039-da18-4acd-afed-506173e6ab92 ## Taking the Family Reins Parithad Petampai didn't feel ready when he took over as CEO of Muangthai Capital, founded by his parents. After 12 years as second-in-command, he stepped up during his father's health crisis. Despite the company's traditional roots, Parithad has driven digital innovations like paperless record-keeping. ## The Rise of Microfinance Muangthai Capital has grown to 9,000 branches as Thailand's largest microfinance provider. Starting with motorcycle loans, the company went public in 2014, bringing financial access to rural areas. With $936 million revenue in 2025, it ranks among Southeast Asia's top firms. ## Social Impact Business Model Parithad emphasizes serving Thailand's bottom 10%: 'Without our loans, people couldn't buy fertilizer or pay school fees.' While critics target microfinance's 28-33% interest rates, he advocates moderate profits and growing alongside customers who upgrade from bikes to trucks. ## The Industry's Dark Side Microfinance faces criticism for debt cycles created by high interest rates. In Cambodia, average debts now triple incomes, with 10% loans overdue. World Bank reports highlight inadequate borrower assessments. Parithad counters with his 'moderate profit' approach to sustainable lending. ## Lack of Local Support Muangthai receives limited backing from Thai authorities, relying instead on international funders like ADB. Their 2024 $335 million social bond issuance in Singapore highlights this gap. Parithad notes local institutions still view microfinance as a 'threat' rather than an economic catalyst. ## Thailand's Financial Transformation Economic optimism grows under Thailand's new government, with stocks up 28% YTD. Parithad positions microfinance as key to recovery: 'When customers upgrade from motorcycles to pickup trucks, we grow together.' The sector remains vital for inclusive development despite regulatory challenges. ## Sources covering this story - https://fortune.com/2026/07/13/muangthai-ceo-parithad-petampai-thailand-microfinance/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._