This is a guest post by Ranvir Singhsachakul who is a project consultant at Message Spring. Ranvir has worked at startups across SEA such as Bolttech and Salary Hero, and closely monitors the latest tech trends as they rise to prominence. Ranvir lives in Bangkok.
Guest Post Series: Ranvir Singhsachakul
The Thailand Example
Thailand has one of the highest rates of household debt in the world.
With the average household more than THB 500,000 in debt, Thai people are carrying financial burdens that take a lifetime to pay off.
The sad reality is, many Thais sink into debt due to a lack of financial literacy and prudency. Financial literacy is a necessary life skill in today’s world.
The Global Picture and How Tech is Playing a Role
The global economic landscape is everchanging, and people are faced with complex financial decisions. Financial literacy, or the ability to understand and use various financial skills such as budgeting, investing, and saving, empowers individuals to make informed and effective decisions regarding their money.
The role of technology in improving financial literacy has become increasingly prominent in today’s interconnected and digitized world. Technology serves as a powerful tool to disseminate information, provide interactive learning experiences, and offer accessible resources, contributing significantly to enhancing the financial literacy of individuals.
A Bit about My Context
As someone who built an early-stage financial literacy product for a Thai FinTech company, I often spoke to customers about their plight. Oftentimes, I found that when customers were in debt, they would rely on a loan shark. This led to vulnerable people taking out loans they could never repay.
Most customers claimed they didn’t know better and didn’t have any educational help or financial assistance in managing their personal finances.
Fintechs in Asia
FinTech companies around the region are now catching on to this trend, as it is an issue plaguing other countries in ASEAN too.
Companies like Salary Hero, Payd and Wagely are offering providing blue-collar workers with a platform to improve their financial wellbeing through the concept of salary on demand, while also providing access to learning materials that simplify the learning process through gamification.
The Ingredients Making these Applications Successful
Financial literacy applications also focus on interactivity. Apps like Mint and You Need a Budget (YNAB) provide live tracking features whereby people can link their accounts to the app and view their spending, saving, budgeting and investment habits on-the-go.
All of these habits are put into context through the setting of a larger financial goal. The human mind often needs to be outcome driven, so having a goal in sight gives the user something to work towards.
Many of these platforms also leverage engaging formats like videos, quizzes, and simulations, making the learning process more dynamic and effective.
Summing up
All in all, technology plays a pivotal role in improving financial literacy by offering a diverse range of tools and resources.
With more startups focusing on addressing this need, we will see a shift that makes financial education more accessible, engaging, and personalized.
