Companies like Ngern Tid Lor are leading the movement toward financial equality.
There is a new upheaval coming in the financial world. People all over the world are starting to recognize that the disparity between rich and poor is growing instead of shrinking. The phrase "the rich get richer, and the poor get poorer" has never been as accurate as in today’s global economy.
While some people cry out against the injustice and unfairness of it all, some companies around the world are actively looking at ways to provide needed financial services to low-income people. In Thailand, Ngern Tid Lor is one of these companies. They specialize in financial services called microfinance or microcredit.
They offer car loans and insurance services to mainly low-income people. Their customers would not meet the acceptable income levels for a loan through a standard bank. But by having over 1,000 offices all across Thailand, Ngern Tid Lor can make loans in such large numbers, that they can make the business model work for them and they issue small loans to people who desperately need them.
The concept of microcredit has been around since 1976. But with digital technology, today these microcredit lenders are looking to expand their services. In adopting new technologies to achieve their goals, they're also working toward lessening the gap in wealth worldwide.
Establishing Trust Enables Growth
Borrowers securing loans from established lenders, whether for business or personal reasons, know that the only way to enable business or personal financial growth is to build trust with your lender.
But standard banks generally don't offer loans in small enough amounts to enable low-income people even to have a shot at establishing that trust. The most modest loans they offer are simply out of reach of the most well-intentioned, low-income people.
This “glass ceiling” perpetuates the income disparity. And industrious people who have no means to access money to develop their lives lose hope. Economists realize that this is also a massive waste of a country's resources.
Using Digital Technology to Benefit the People of Thailand
As advances in digital technology continue in the financial world, companies like Ngern Tid Lor are exploring ways to utilize applications and digital functions to improve the lives of their customers and decrease the income disparity in Thailand.
They’re focusing on the lifeline of every person in the new millennium – the smartphone. Everyone recognizes the need to stay connected as being absolutely vital to improving one's financial situation. The smartphone is an essential tool for low-income to stay connected to their friends and families, as well to stay informed about new jobs or economic opportunities in their area.
Microfinance companies have seen the value of incorporating smartphone-centered applications in the services they offer to benefit their customers.
By keeping low-income customers up to date on changing interest rates, account balances and payment balances, these finance companies are providing their customers with a lifeline to future prosperity. They are using the technology available to everyone to enable their customers to succeed.