: The International Organization for Migration (IOM)
: Nonprofits / องค์กรไม่แสวงหาผลกำไร
: 664
: 11 April 2024
19 April 2024
Open to Internal and External Candidates
Position Title : Consultant to Develop Migrant-Inclusive Bank Guidelines
Duty Station : Home-Based (Thailand)
Classification : Consultancy
Type of Appointment : Consultant Contract
Desired Start Date : As soon as possible
Closing Date : 19 April 2024
Reference Code : CFA049/2024 (EXT)
Established in 1951, IOM is the leading inter-governmental organization in the field of migration and works closely with governmental, intergovernmental and non-governmental partners. IOM is dedicated to promoting humane and orderly migration for the benefit of all. It does so by providing services and advice to governments and migrants.
1. ORGANIZATIONAL CONTEXT AND SCOPE:
Over the past three decades, Thailand has emerged as the primary destination for migrant workers from Cambodia, Lao People’s Democratic Republic (PDR), and Myanmar, with over 3.15 million registered migrant workers as of January 2024. Labour migration is a pathway to economic development for both countries of origin and countries of destination. According to the Thailand Migration Report 2019, migrant workers made up over 10 per cent of the workforce and contributed to 4.3–6.6 per cent of Thailand’s gross domestic product. Prior to the COVID-19 pandemic, migrant workers in Thailand collectively contributed 2.8 billion United States Dollars (USD) in formal remittances to their origin countries each year. The actual remittance amount is likely higher due to the prevalent use of informal remittance channels which remain untracked.
Despite their vital socioeconomic contributions, many migrant workers are subject to financial exclusion that impedes their ability to reap the full benefits of labour migration. Migrants may face structural or practical barriers in opening bank accounts, securing loans, sending remittances through safe and affordable channels, building credit, or managing their money on digital platforms. Often, migrant workers and their families are excluded from these systems because they lack the legal status, financial resources, language proficiency or knowledge to become actively involved, or they face regulatory restrictions that prevent them from fully participating in the system.
Financial exclusion can have far-reaching consequences, exacerbating poverty and marginalization, and hindering social inclusion and economic progress for migrant workers and their families. The lack of access to affordable credit can push them into cycles of debt with high-interest lenders, while the absence of bank accounts limits their ability to invest savings and build financial security as well as send safe remittances.
Recognizing the importance of promoting financial inclusion, the International Organization for Migration (IOM) through its Poverty Reduction through Safe Migration, Skills Development and Enhanced Job Placement in Cambodia, Lao PDR, Myanmar, and Thailand (PROMISE) programme conducted a Needs Assessment of Financial Inclusion for Migrant Workers in Thailand whereby 325 migrants from Cambodia, Lao PDR and Myanmar were surveyed. The study sought to provide an overview of the formal financial services available for migrant workers at a systemic level, to assess migrant workers’ access to these services, and to understand their personal financial management practices as well as identify financial literacy needs.
The study identified notable gaps in migrant workers’ access to financial services provided by the banking sector. Only 19 per cent of surveyed migrants possessed a bank account in Thailand. Among those without bank accounts, reasons included insufficient documentation, lack of knowledge on how to open and use an account, language barriers, and not having enough money to deposit. The study further asked migrants to rate, on a scale from one to five, measures for improved access to banks in Thailand. They favored actions such as reducing paperwork (average rating: 4.17), extending opening hours (4.14), minimizing fees (4.08), and having bank personnel proficient in migrants’ languages (3.97), reflecting a strong emphasis on simplicity, accessibility, and cost considerations.
The study also highlighted that banks with tailored services were successful in attracting migrant clients. For instance, Kasikorn bank, which was the first bank to introduce a Myanmar language menu in its ATMs, emerged as the most popular bank among the surveyed respondents. Meanwhile, many migrant workers had received assistance from their employers to open bank accounts, pointing to potential difficulties in navigating the account-opening process alone. These challenges may stem from the lack of standardized requirements across different banks. Given that migrants may have alternative identification documents, unfamiliarity among bank personnel may lead to refusal or requests for additional documents. A few surveyed migrants noted that they were refused a bank account as they were asked to have an employer act as a guarantor, a request typically made on a case-by-case basis. Although discrimination was not a salient factor identified in this research, a separate study on migrant customer experiences at banks in Thailand found that some migrants avoided using banking services as they did not feel welcome due to discriminatory treatment by bank personnel (UNCDF, 2017).
Furthermore, only 7 per cent of surveyed migrants used banks to send remittances, attributed to the finding that banks are the costliest remittance channel, with an average remittance fee of 3.4 per cent. Similarly, in response to Question No. 176 in Parliament dated 12 October 2023, it was estimated that only 500,000 migrant workers currently remitted through official banking systems in Thailand. The United Nations Sustainable Development Goal 10.C specifically targets reducing the transaction costs of remittances to less than 3 per cent of the total remittance amount, underscoring the importance of addressing the high remittance fees incurred through banking channels in Thailand.
In response to the identified challenges, IOM seeks a consultant(s) to develop a guideline that aims to address the specific needs and challenges faced by migrant workers in accessing formal financial services and offer a roadmap for banks to be more migrant-friendly while in compliance with relevant regulations and standards. Key components of the guideline will include identifying legal documents held by migrants, simplifying account opening procedures, providing language assistance, and outlining fees associated with banking services. By providing banks with practical guidance, this initiative seeks to empower them to proactively address the financial inclusion needs of migrant workers, fostering a more inclusive society. In turn, by ensuring that migrants have access to essential banking services, Thailand can harness a more inclusive financial ecosystem that not only empowers migrants but also unlocks its full economic potential.
2. RESPONSIBILITIES AND ACCOUNTABILITIES
The primary objectives of the Migrant-Inclusive Banking Guideline include:
IOM seeks consultant(s) to lead the development of a concise 2-4 page paper guideline establishing a framework for banks in Thailand to effectively serve migrant customers while complying with relevant regulations. The tentative scope of the Guideline should encompass:
3. REQUIRED QUALIFICATION AND EXPERIENCE
Education:
Experiences:
Skills:
Languages:
4. DESIRABLE COMPENTENCIES
Values
Core Competencies
Other
Any offer made to the candidate in relation to this vacancy notice is subject to funding confirmation.
Appointment will be subject to certification that the candidate is medically fit for appointment and verification of residency, visa and authorizations by the concerned Government, where applicable.
Only candidates residing in either the country of the duty station or from a location in a neighboring country that is within commuting distance of the duty station will be considered. In all cases, a prerequisite for taking up the position is legal residency in the country of the duty station, or in the neighboring country located within commuting distance, and work permit, as applicable.
How to apply:
Interested candidates are invited to submit their applications to the IOM Bangkok Human Resources Unit at e-mail bkkrecruitment@iom.int by 19 April 2024 at the latest.
Kindly indicate the reference code CFA049/2024 followed by your full name in the subject line.
Applications should include:
Only shortlisted candidates will be contacted.
Posting period:
From 11.04.2024 – 19.04.2024
