ADB grants pave ways to more financial services
Lack of access to a variety of financial services has been highlighted as an important cause of poverty in Thailand.
Recent figures show that only 38 per cent of low-income Thai families have used one or more financial services, while another 16 per cent do not use financial services at all. By comparison, 80 per cent of middle-to-high-income families use three or more financial services. It is estimated that fewer than half of the country’s low-income households make use of lending services. More than a quarter do not have access to savings products.
An improvement to this situation is being targeted under a US$1.5-million (Bt46 million) grant overseen by the Asian Development Bank. Under an agreement signed yesterday with the Finance Ministry, a strategic framework for financial inclusion would be developed to improve access to financial services in Thailand, such as microfinance, remittances, micro-pensions and mobile banking.
“Although Thailand has made significant strides in reducing poverty, disparities still exist when it comes to accessing the full range of financial services,” said Craig Steffensen, country director of the ADB’s Thailand Resident Mission. “The ADB is committed to supporting Thailand in laying a strong foundation for financial inclusion.”
The grant from the Japan Fund for Poverty Reduction will be administered by the ADB and implemented over a period of three years, starting from February 2012 next month. The Fiscal Policy Office will be the executing agency.
The project team will assess supply and demand for microfinancing products, including the monitoring of any gender bias in terms of access and affordability.
They will also assist in drafting consumer-protection legislation, help develop a campaign to advance financial literacy, and recommend improvements to legal and regulatory conditions that can promote access to remittances, micro-pensions, mobile banking and micro-insurance, which is |critical to mitigating risks to |the poor.
