Ten years ago, usage of the term “Financial Education” in Thai society was limited to groups who had either studied the subject or worked at financial institutions or organizations. People who possessed such knowledge were capable of managing their own savings and debt ratios and contributing to a good quality of life, while others had to make do as best they could.
It was in this context that Ngern Tidlor, at the time a small credit company, initiated a “Financial Education Project” with a group of vendors at a wet market. The aim was to help people otherwise unable to access credit from financial institutions within the system to find a chance to free themselves from informal debts. This debt is known as “A-bang debt” or “motorbike helmet debt”.
From that day onwards, Ngern Tidlor’s “Financial Education Project”, or FIN ED, was like a small pebble thrown into a lake that created a ripple effect. Over time it has become a driving force in Thai society that has fostered awareness of the importance of financial literacy to create sustainable opportunities for a better quality of life.
Start with ‘Purpose’ and ‘Empathy’
In 2013, Ngern Tidlor started product trials for ‘Wet Market Loans’ and initially collected daily installments to mirror the methods applied by informal loans – methods familiar to the market vendors. It was discovered that market vendors can consistently pay installments of 100 baht per day (equal to 700 baht per week). However, when weekly installments of 500 baht were trialed, less than the daily payments, the market vendors were unable to save enough money when the weekly payment came due.
Ngern Tidlor talked with the vendors and learned that the problem was caused by a lack of knowledge in financial planning and limited awareness of the importance of financial discipline. As a result, they failed to allocate funds for their savings and expense budgets. Their daily earnings were spent on whichever expenditures arrived first; debts were paid to collectors who made first contact.
The Financial Education Project was first launched by a small team at Ngern Tidlor that would travel around to organize financial literacy workshops with vendors at various wet markets.
The activities included games which created a fun atmosphere and imparted knowledge in Ngern Tidlor’s particular style. Some of the merchants who had already repaid their debts nevertheless asked to join the workshops with a desire for the new financial knowledge and content, which was frequently updated by Ngern Tidlor.
Knowledge Expanded to the Community
When participants were able to rid themselves of debt and enjoy a better quality of life by applying the financial knowledge gained via the workshops, Piyasak Ukritnukul, a Managing Director of Ngern Tidlor PLC, recognized an opportunity to expand efforts and deliver financial knowledge to a wider section of society, and the project was officially born.
Later on, it enabled Ngern Tidlor employees to volunteer and participate in financial literacy activities at communities across the country. This social project allowed the participants to better understand the company's purpose to act for the customer, and to gain a better understanding of the circumstances and behaviors of customers.
Ngern Tidlor also customized its finance courses to suit communities with people of various professions. Field surveys on community needs revealed "debt relief" and "savings" as the most popular topics. Furthermore, the “Chang jai” mobile application was developed in collaboration with the Digital Transformation team as a tool for participants to conveniently record daily financial transactions and perform data analysis that provides instant money management advice. This tool also enhances the capability of the FIN ED team at Ngern Tidlor to more effectively help people with financial problems.
For example, ‘Phu Yai Ya’ (Yuwachalin Yoddee), the chief of Sai Ngam village told us about how the Financial Education Project brought positive changes to the lives of residents who participated.
“The first time Ngern Tidlor organized the project, villagers were indifferent. Some went, others didn’t participate. But there were many activities and lots of people had the opportunity to participate in these activities and soon awareness and interest began to spread throughout the village. I think Ngern Tidlor does very well to motivate villagers to practice discipline in their savings and record their income and expenses. Then it becomes clear to the villagers how any expense can be reduced in order to save more. When we have savings, we can pay off debt faster and still have money for other items. Now the percentage of villagers with savings has increased while the amount of household debt is steadily decreasing. We wish to thank Ngern Tidlor.”
Increase Channels, Create Opportunities, and Impart Financial Knowledge.
The determination to provide financial knowledge also granted Ngern Tidlor the opportunity to participate in The ‘Kam Lang Jai Project under the initiative of HRH Princess Bajrakitiyabha’. The project aims to develop a financial curriculum suitable for prisoners by offering knowledge on how to find a good career that matches interest, as well as how to calculate costs, money management, saving, and business expansion. The project also organized ‘Train the Trainer’ programs to enable prison officers to teach financial matters to the prisoners.
During the COVID-19 period, Ngern Tidlor was unable to visit them but sought other opportunities to impart financial knowledge. The company produced e-learning videos for more than 30 prisons to ensure that prisoners won’t miss the opportunity to start a new stable, productive and sustainable life outside prison.
Ngern Tidlor also partners with many other organizations such as Teach For Thailand (TFT), Campaign to Stop Gambling Foundation, Toolmorrow online media: Change Yourself, Change Your Children, and the Happy Money Program by Stock Exchange of Thailand (SET) to create a network of “financial mentors” to spread financial knowledge across different groups of people in society.
Paving the Way to a Stable Future for Ngern Tidlor People
Ngern Tidlor management places high priority on ‘Stable and Sustainable Financial Health of Employees’. Every NTLers must undergo the basic financial literacy course. Additionally, board game activities are provided to enhance financial knowledge and regular communications through various media i.e. video clips, podcasts, etc. Ngern Tidlor also ensures that groups with special access needs are included in these activities and not overlooked, including employees with impaired hearing.
Ngern Tidlor encourages all employees to understand the importance of retirement planning, provident fund membership and the Employee Share Program (EJIP). These are deliberate efforts by management to ensure that all employees have good financial health and a stable future post-retirement.
Ngern Tidlor also has a Financial Clinic where employees with financial problems can receive advice from FIN ED Mentor (financial mentors, completed the SET's Happy Money program volunteer to provide financial advice for Ngern Tidlor employees). The FIN ED team and FIN ED Mentors work closely to provide advice and find solutions that help participants solve their financial problems.
Thitarat Chaiyawachiraroj, Telesales team member and FIN ED Mentor, shares her experiences.
“I used to mentor a younger colleague at Ngern Tidlor who was fooled into a Ponzi scheme and had to repay money owed to other people invited to the scheme along with a car mortgage. There wasn’t enough money each month to cover expenses. I advised to negotiate with each creditor and settle on what was realistic. I also advised to find ways to generate more income. Most importantly, don’t borrow elsewhere to pay the debt. The advice was followed and gradually the debt was repaid.
The day that she lined to thank me I felt the proudest for helping to improve someone’s life, to free them from suffering under debt. Now I understand what Piyasak said on graduation day: ‘This certificate is a meaningless piece of paper if our knowledge is not applied to help others.’”
Today, the FIN ED team’s dedicated efforts for over 10 years, with a mission to provide financial knowledge and create opportunities for members of society, has had a profound impact and enjoyed remarkable growth. The FIN ED team is always ready to develop and continue to expand its reach and provide financial knowledge to even wider groups. The ultimate aim is ‘stable financial health and sustainable quality of life for people in society’ with ‘consideration’ at the heart of all efforts to ensure a successful mission.