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Case study: How TMB promotes financial inclusion

Founded in 1957, TMB Bank Public Company Limited (TMB) is the sixth largest commercial bank in Thailand, serving 10 million customers and offering financial products and services ranging from deposits, loans, investment products and bancassurance. TMB aims to provide equal, inclusive, and easy access to financial products and services to all its customers.  Tweet This!

This case study is based on the 2019 Sustainability Report by TMB published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

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In 2019, TMB launched a number of financial inclusive products and services, for both retail customers and small-sized businesses. In order to promote financial inclusion TMB took action to:

  • launch the TMB Smart Port
  • introduce the TMB Experience
  • offer the instant loan on TMB TOUCH
  • introduce two new unsecured loans for small-sized businesses

What are the material issues the company has identified?

In its 2019 Sustainability Report TMB identified a range of material issues, such as customer experience, digital transformation, data privacy and protection, market conduct, responsible lending. Among these, promoting financial inclusion stands out as a key material issue for TMB.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups TMB engages with:

To identify and prioritise material topics TMB engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Shareholders

 

 

·      Annual shareholder general meetings

·      Analyst meetings

·      Shareholder and investor roadshows

·      Quarterly reports

·      Seminars

·      Information disclosure via regulators’ platforms

·      Enquiries submitted through TMB website

·      Investor Relations contact

·      Whistleblower and complaint channel

Employees

 

 

 

 

·      Communication with HR Business Partners

·      Employee engagement survey

·      Orientation for new employees

·      Town Halls

·      Regular emails and other online communication

·      Whistleblower and complaint channel

Customers

 

 

·      Branches

·      Relationship Managers

·      TMB Contact Centre

·      Online digital platforms such as Facebook and TMB website

·      Activities and events with customers

·      Whistleblower and complaint channel

Partners

 

·      Procurement channel

·      Whistleblower and complaint channel

Competitors

 

 

·      Banking industry activities, seminars, trainings, and events hosted by regulators and external parties

·      Whistleblower and complaint channel

Regulators

 

·      Banking industry activities, seminars, trainings, and events hosted by regulators and external parties

·      Whistleblower and complaint channel

Communities

 

·      • FAI-FAH Centres

·      Community Relations

·      Community surveys

·      Whistleblower and complaint channel

What actions were taken by TMB to promote financial inclusion?

In its 2019 Sustainability Report TMB reports that it took the following actions for promoting financial inclusion:

  • Launching the TMB Smart Port
  • The TMB Smart Port is the first full service for investment portfolio management, specifically designed by TMB to adjust the investment portfolio according to market conditions. This new service offers widening wealth services to mainstream customers and to those who are interested in investing in funds and want to build their financial wealth, but do not know how to manage their portfolios and do not have time to watch the market.
  • Introducing the TMB Experience
  • The “TMB Experience” is a new concept branch, offering engaging experience that combines digitisation with a human touch to enable customers to enjoy discovering their real financial needs through an ‘Avatar’ identity creation and exploring products and services which can help them reach their financial goals. The aim is to allow customers to understand their own financial needs and objectives effectively with the assistance of both digitised tools and TMB branch personnel. Customers will not be forced to buy any products, but once they are ready to purchase, they will be offered the products and services on a need-based basis to make sure that they can get more benefits in accordance with the TMB Get MORE proposition.
  • Offering the instant loan on TMB TOUCH
  • TMB launched the instant loan on TMB TOUCH, where customers can instantly, easily, and conveniently apply for loans or credit cards via TMB TOUCH with no documents required and approval decisions made known to customers immediately.
  • Introducing two new unsecured loans for small-sized businesses
  • TMB introduced two new unsecured loans for stock investment and to increase financial liquidity in collaboration with Lazada Thailand, an e-commerce platform, for online merchants. These products were developed to address the pain and needs of small-sized businesses, who struggle or do not have access to secure loans for their businesses. Securing loans requires countless documents and time-consuming processes, which have been barriers for small-sized business. Now they can apply for loans with TMB as these loans have streamlined the whole process, making it accessible for the business to secure a loan.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 203-2 Significant indirect economic impacts

Disclosure 203-2 Significant indirect economic impacts corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified, IEMA & CIM recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified, IEMA & CIM recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by TMB, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to TMB: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.