Financial literacy is a key element on the national agenda. Experiences from developed countries such as Germany and South Korea show that improving financial literacy will uplift the financial well-being of the people and the welfare of the economy.
For Thailand, several endeavours have been undertaken by policymakers and private organisations to improve financial literacy. Leaders on this front are the Bank of Thailand, which features content on financial planning and cybercrime on its website; the Deposit Protection Agency; and the Securities and Exchange Commission, which focuses on the issues of saving and investment planning. Some commercial banks have also introduced financial literacy programmes for their customers.
Nonetheless, these efforts remain at best fragmented and far from inclusive. Their attention to various target groups lacks a cohesive message for reaching the general population of Thailand.
In addition, participation from commercial banks is relatively limited. As key players in the financial system, banks can and should strive to improve the country's financial literacy by providing financial knowledge and shaping good financial behaviour.
Against this backdrop, the Thai Bankers' Association has an initiative for improving financial literacy and making it inclusive for all Thai people. With their strength of being intermediaries across depositors and borrowers, banks could leverage their existing network as a platform to aggregate the content of financial literacy and deliver it to target groups more efficiently and effectively than ever before.
Together with the active partnership of policymakers, regulators and non-profit groups, this platform could potentially provide the standardised content for appropriate target groups based on the strength of partners such as the Bank of Thailand and the Securities and Exchange Commission.
For example, a sound financial attitude should be cultivated at an early age. This could mean instilling primary school students with the concept of saving, while high school students would start to understand the importance of financial planning and the role of credit as student loans loom on the horizon.
The key success factor is scalability. A digital aspect could elevate access and adoption. Interactive elements such as games or contests could boost content delivery.
Under the network effect, the digital channel could distribute content via internet and mobile. But while this channel is a necessary tool to scale mass awareness, it is insufficient to make awareness sustainable for specific groups in particular areas. Rural Thailand, for instance, may require a more personal involvement to influence attitudes towards saving, investment and financial well-being.
Bank branches and staff are crucial resources. With 7,000 branches and 150,000 employees nationwide, the banking network can foster widespread participation.
As a main contact point of the customer journey, bank workers should engage people in their community and ask what kind of financial knowledge they need, what their financial behaviour entails and what attitude they have towards financial planning. Thus informed, the banks will understand what sort of content the target groups in the community need. In this manner, financial literacy could be built from the inside.
Furthermore, standardised digital content on the platform can be used by teaching staff to become financial trainers. Well-trained staff are then able to train the representatives of the community -- youth leaders, teachers, community organisers -- to instruct their corresponding members. This "train the trainers" approach will inclusively expand the financial literacy of target groups.
Moving beyond their role in inventing financial products and providing services, it's time for banks to step up and take responsibility for providing financial knowledge and building financial discipline in society. Collaboration with existing partners and leveraging networks and resources will enhance banks' ability to promote financial literacy.
Most important is that increasing financial literacy must not be for marketing purposes, but rather for the sustainability of financial well-being. And it is not only for bank customers but for all Thai people. Sincerity will make it great on its own.
TMB Analytics is the economic analysis unit of TMB Bank. Behind the Numbers is co-authored by Panawat Innurak and Naris Sathapholdeja. They can be reached at tmbanalytics@tmbbank.com
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