Financing gets fairer

Standard Chartered Bank in Thailand now has a policy of “diversity and inclusion” that finally removes the roadblocks stopping couple whose marriages are unregistered – including same-sex couples – from borrowing money from a bank. Thailand is so far the first country where it’s been introduced.

Launched in November, Standard Chartered’s We+ programme offers loans to “modern couples” – those not legally married, whether homosexual or heterosexual. It covers mortgages, insurance, credit cards and investments, and requires, along with the usual financial documents, only “proof” of an ongoing and established relationship.

“It could be pictures of you and your partner on a recent vacation together,” says president and chief executive Lyn Kok. “It has to be proof that you’ve been living together for a certain period of time – and we’re not talking about 10 years or an insanely long time like that – just anything that makes us believe you’re in a stable relationship. 

“Then you’re good to go, just like any married couple with a legal certificate. The application process is the same, where your debt level and your ability to pay us back will be the main things considered.”

The Britain-based multinational banking and financing company – which opened its first outlet in old Siam in 1894 and was licensed to operate here as a commercial bank in 1999 – has introduced the policy in Bangkok and Rayong and plans to extend it to branches across the nation. It’s also preparing to facilitate joint loans for expatriates and for Thai-foreigner couples. 

“I have a gay-couple friends who’d been through terrible experiences asking for joint loans from banks to buy a house together,” Kok says. “Many banks refused them just because they’re not ‘family’ and their status as a couple wasn’t legally recognised. So that got me thinking, ‘How can we be inclusive in practice?’

“At present, no other bank in Thailand reaches out to non-legally married couples. We+ was developed on the principle that we believe in being an inclusive bank that doesn’t discriminate based on personal lifestyle choices. We believe everyone needs security in life, both financially and in personal terms.”

Kok says the bank’s ultimate goal is to “increase financial access” for all couples, whether they’re heterosexual, homosexual, registered by law or non-registered. “We conceptually call these people ‘modern couples’.”

Salaried worker Sukrit Na Nakorn, 35, certainly could have benefited from the Standard Chartered innovation had it been available earlier.

“I couldn’t get a joint-mortgage loan anywhere with my long-time girlfriend because we’re not husband and wife yet,” he says. 

“The plan was to buy a condo, move in together and then get married. I know that, for some people, it’s unconventional to live together before getting formally married, but it makes sense for us, and I’m sure for a lot of other people too in this day and age. I believe in our relationship and our commitment to build our future together and, of course, to pay off debts together. A piece of paper shouldn’t be the absolute statement to prove that. 

“So what did I do? I co-borrowed with my brother,” Sukrit says. “The loan was approved within a week. We got the condo, but my brother wasn’t too happy about being in debt for a property he doesn’t own, and who could blame him? Besides, it’s unfair to put a financial burden on him when my girlfriend is the one who’s willing and able to take the responsibility.”

Most commercial banks offer joint loans, but they prefer the borrowers to be immediate family members or legally married. The roadblock for everyone else appears to stem from a deep-rooted “separation stigma”. The common belief is that legally married couples are more likely to stay together, when in fact this is not always the case. When love flies out the window, any legal document supporting the marriage flies with it. 

The same sort of stigma scuttles non-married couples’ hopes of buying life insurance. Insurance firms in Thailand gear their marketing and underwriting to blood relatives and legal spouses. They’re the only people who can be listed as beneficiaries. 

But Standard Chartered Bank (Thai) has an arrangement with Prudential Insurance to extend underwriting coverage and give clients a choice in third-party beneficiaries.

For same-sex couples, still barred by Thai law from legalising their union, We+ opens up opportunities to build a secure future together.

“The minute the banks ask you to define your relationship with the co-borrower, you know the application is going to be tossed out the window,” says one Bangkok lesbian, speaking on condition of anonymity. 

“People in same-sex relationships have to work harder to secure financial stability because, no matter how committed you are to each other, you’re on your own when it comes to seeking help from financial institutions – because we can only ever be recognised as individuals. 

“I see what Standard Chartered is doing as a fair and decent gesture.” 

 

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