ข่าวประชาสัมพันธ์เศรษฐกิจ/การเงิน

SCB introduces MeTang: revolutionary lifesaving advance pay to Villa Market and Ampol Food employees

          A fin-tech service in line with the BOT's responsible lending policy guide, creating economic-social change aiming to prevent salaryman from loansharking
          Siam Commercial Bank (SCB) is the first bank in Thailand to launch an on-demand wage access option for salaried employees. Called "MeTang" and available through the SCB Easy Application, this payroll innovation lets salaried employees receive their pay instantly without waiting for scheduled paydays. MeTang will help employees deal with financial emergencies and plan personal finance based on their fixed income without the need to turn to loan sharks, in line with the Bank of Thailand's responsible lending policy guide. In its first phase, the service has been introduced to Villa Market and Ampol Food as part of SCB's Payroll Solution packages offering different payroll products and services and corporate benefits to answers the needs of employers in terms of personnel management and employee financial welfare. SCB is seeking to tap into the payroll account market, with a goal of 20% growth in 2019. 
          Talking about SCB's innovative service, SCB President Orapong Thien-Ngern said, "SCB is committed to developing digital innovations to improve our customers' financial experience and help drive change in business and society. We have Digital Ventures as our product and service development and innovation arm, using the adoption of advanced technology and rethinking to truly understand our customers' pain points in order to develop new and different products and services offering the maximum in benefits for our customers. With the Bank of Thailand's responsible lending policy guide in mind, we are developing new services to serve customers and develop society at the same time."
          "We know that quite a number of salaried employees are facing trouble from rising household debt. Unable to make ends meet, some are forced to seek money from loan sharks, adversely affecting not only those families but the Thai economy as well. To address this issue, SCB developed the innovative MeTang service for employees receiving their salaries through SCB Payroll, allowing them to get their salaries in advance on the SCB Easy Application, on a date they choose." 
          An SCB survey of employees revealed that among those earning less than 30,000 baht per month, 80% sought funds from loan sharks, 88% had loan amounts less of than 15,000 baht, and 57% said that debt concerns had reduced their productivity. This is in line with a number of studies on advance pay welfare in the USA, which found that it helped boost employees' motivation and engagement, and reduced turnover by 28%, saving recruitment costs. This welfare scheme is widely popular in many countries.
          Orapong added that SCB has reported its introduction of MeTang financial service to the Bank of Thailand and introduced it to Villa Market and Ampol Food in a first phase. SCB believes that the service will improve employees' financial health and address issues concerning both employers and employees – reducing the risk of employees falling victims to loan sharks and boosting the Thai economy. 
          SCB Executive Vice President, Head of Global Transaction Banking Services Division Ittiphan Jearkjirm said, "MeTang financial service is part of SCB Payroll Solutions. It is a value-added payroll service that differs from others in the market, easing employer burdens by offering advance welfare management without using company reserves. In the first phase, employers will offer the service to a select target group of employees. Via the MeTang feature on the SCB Easy Application, qualifying employees will have 24/7 access to their pay for a percentage of their actual working days to date each month, in amounts up to 50% of their salary or 20,000 baht/month maximum (or as specified by the employer). The advance pay fee will be deducted from their next pay check at a rate of 20 baht per for each 1,000 baht of advance pay amount withdrawn. In addition, to help employees effectively manage their incomes for better financial discipline, we offer a special program providing them with information on personal financial management. Apart from MeTang financial service, SCB offers financial welfare packages covering employees' needs, including deposits, loans, life insurance, and credit cards with special interest rates and exclusive promotions. As our tagline goes: Choose SCB Payroll and more good things will follow. SCB expects growth of 20% from the current base of 2 million payroll accounts this year.
          Villa Market JP Co., Ltd. CEO Pisit Phusanakhom said, "Businesses need to adapt to keep pace with the current global trend of digital disruption. Driving business forward is also a big challenge for human resource management. We currently have some 1,200 employees, and our focus is on creating and maintaining a happy workplace with welfare benefits boosting their morale. Most of our employees are taking care of their families, so many of them need pay advances. Previously we offered welfare loans, with repayment deducted from salaries. We trust SCB's advice regarding business adaptation to keep pace with the digital age and the continuous financial innovations offered to Villa Market. Particularly, the MeTang financial service is another digitally added-value option that we believe hits the spot by helping employees in need of advance pay. The amounts employees require are not too high, and they can make financial plans for the advance pay that they need."
          Ampol Food Processing Co., Ltd. Managing Director Kriangsak Theppadungporn said, "We take care of some 1,300 employees under the Ampol Group with understanding and empathy. Most of our employees have been working here for so long that they are like family. We offer them a variety of welfare options, including advance pay when in need. MeTang financial service is convenient for our employee as it's thanks to a self-service feature on the SCB Easy App that allows employees to make transactions and get money real-time. It eases our employees' worries, allowing them to continue working effectively. Furthermore, we also offer other financial products from SCB Payroll Solutions to improve our employees' quality of life."