Bangkok--31 Mar--Maxima Consultants
Thai Credit discloses the severe impact the Covid-19 outbreak has had on small business and has thus decided to provide their Nano and Micro customers with 90-day Covid-19 Insurance with coverage of THB100,000. This insurance is given to all Nano and Micro customers and it is completely FREE, no condition and no registration is required from the customers.
Due to the Covid-19 outbreak, the people’s health and financial stability have been severely affected. Many people have lost partial or full income due to less customer visits or closure of their business operations. In the worst-case scenario, if the situation is deteriorating and the Nano business owner is affected by the virus, not only the business but the entire family will be devastated. Thai Credit Retail Bank Plc., as a specialist in the micro segment has decided to take immediate initiatives to help protect their customers by giving free 90-day Covid-19 insurance via Dhipaya Insurance Plc. with coverage of THB 100,000 in case of coma or death to all the Nano and Micro business owners nationwide, or about 170,000 customers. According to our research, the families of these customers largely depend on single breadwinners. If something were to happen to these breadwinners, this insurance will give the necessary cash support to cope with the costs for their living and other essentials. In addition, the Bank will also provide financial support with reduction in the customer’s payments to cope in this situation to affected customers who needs them following the government program.
Mr. Roy Agustinus Gunara, Managing Director of Thai Credit Retail
Bank Plc. states that during this difficult situation, the closing of the
market is creating suffering to the Nano and Micro business owners and we must
take some initiatives to help alleviate their burden. We know that the Nano and Micro customer
segments are the most vulnerable and they do not have any means of protection
for this Covid-19 outbreak. The Bank therefore will provide this Covid-19
Insurance to the Nano and Micro customers to give them the protection they need
for free. No registration or document is required. They will receive SMS about
the information of the protection and claim details. We really hope that the situation will return
to normal as soon as possible.
Thai Credit Retail Bank Plc. also discloses the survey results of
Covid-19 situation impacting the economy of Nano and Micro business by
circulating questionnaires to about 1,800 mom and pop shop owners during March
19-20 in Bangkok and nationwide. The survey was made with the intention to
understand our customer segments’ needs. Referring to the answers we found:
93%
of traditional fresh market merchants received direct and indirect impact to
their businesses resulting in hits to income especially in Bangkok. Number of customer visitation reduced in all
regions ranges from 53% to 76% reduction per day.The
average daily income of market merchants nationwide has dropped from THB8,581
to THB4,148, a 52% decrease. Bangkok Metropolitan has the highest impact with a
68% decrease.A
big drop in customer visits in markets after the Covid-19 outbreak about 61%
average nationwide.Markets
in the West have suffered the most as they have lost an average of 76% of
customers per day.Fashion
related businesses in markets have experienced a 70% drop in daily income, the
largest drop among all Nano categories. The second largest drop is experienced
by Professional Service and Flower and Gardening businesses with both sharing a
66% drop in income. Professional services include beauty salon, laundry, tailor
and massage parlors while flower and gardening businesses are selling fresh
flower garlands. The third largest drop is followed by Mom and Pop’s Grocery
Store or Minimart which have encountered with a decline of an average of 48% in
income.Over
1,100 mom and pop shop owners in all businesses revealed that they have faced
the problem of higher cost of raw materials while about 500 merchants are able
to maintain regular cost of raw materials.According
to a solution to save their businesses, 34% of merchants admitted that they
have not yet found a solution to handle the possible downfall while 24% of them have
decided to reduce their business costs. 12% are searching for alternative
products to sell whereas 10% are planning to borrow
some cash.Many
of merchants’ suggestions has shown that 48% of suggestions require a pause in
debt repayments. 16% of suggestions request a soft loan with lower interest
rate. 8% of suggestions demand the lower monthly repayments and interest rate
cut. The remaining request additional cash loan, government assistance and
others.
(Disclaimer: This research
is conducted by Thai Credit Retail Bank Plc. to a sample of 1,802 Nano and
Micro Finance business owners across the nation. The research is intended as a
study of the situation and not for any other purposes. The Thai Credit Retail
Bank Plc. shall not take any responsibilities for any misuse of data.)
Thai Credit recognizes and understands that this customer segment
lives on variable day to day income and do not have emergency savings.
Therefore, the insurance policy offered will give them and their families the
helping hand they need. If customers are diagnosed as Covid-19 positive and in
case of coma or death caused by Covid-19, the insurance will cover THB100,000.
“Our customers are important to us, no matter how small they are,
we do our best to look after them. We believe Everyone Matters and we stand by
our brand promise, No one See, We see” said Mr. Roy.
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