Why women rule banking in Thailand

A fruit vendor speaks on her mobile phone at her stall inside a market in Bangkok

A fruit vendor speaks on her mobile phone at her stall inside a market in Bangkok

Published Mar 12, 2017

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Bangkok – As one of four presidents at Thailand’s biggest

lender, Kasikornbank, Kattiya Indaravijaya often conducts interviews for senior

positions. The job candidates are impressive. And almost always, they’re women.

"I’m wondering, there’s no guy?" Kattiya, 51,

said in an interview in her office along the Chao Phraya River in Bangkok.

"It’s not that they didn’t pass the screening process, they didn’t apply.

Perhaps women’s interest is in banking and finance. Perhaps guys have a

different passion."

In Thailand, where years of educational equality have combined with a

profession that rewards math skills and merit, women comprise 31 percent of

board and executive committee members in financial services -- some way short

of parity but the highest proportion in the world after Norway and Sweden, according

to a study last year by consulting firm Oliver Wyman.

In the US, the representation of women in similar positions is 20 percent.

Japan is at the bottom of the list, with 2 percent.

"Men probably look for more exciting and challenging jobs than the financial

industry, where work requires more patience, detail, caution and rule

compliance," said Voravan Tarapoom, president of the Association of

Investment Management Companies, a mutual funds trade group, and also chairman

of BBL Asset Management Company. "They may feel financial industry work is

so boring."BBL has to pay special attention to the number of males hired, or else women

will dominate the firm, Voravan said.

Read also:  #WomensDay: One in five say women should stay at home

"Financial jobs require very detailed and cautious persons," she

said. "This may fit the female character more."

Women account for 57 percent of Thailand’s finance and insurance workforce,

according to government statistics. Yet the fact that two-thirds of senior

management and executive roles

are filled by men indicates Thai women still face challenges in achieving

equality, said Joni Simpson, a specialist on gender, equality and

non-discrimination at the International Labour Organisation in Bangkok.

"Accounting is a field that is accessible to women in Thailand, and

therefore they have been able to advance in this sector and are highly visible

across several levels of jobs," she said, citing cultural norms and

attitudes in Thailand. "The chances are better for women to advance to the

highest levels."

Yet across all industries, Thai women account for less than 10 percent of

executive and management roles on average, she said. More work needs to be done

in all sectors including finance to encourage mentoring, access to childcare

and eldercare, and chances for advancement, she said.

Without legislation

Still, Thailand’s high proportion of women in senior financial roles

happened without government legislation, said Bandid Nijathaworn, chief

executive officer at the Thai Institute of Directors and a former deputy

governor of the Bank of Thailand. Norway and Sweden, like other countries

in Europe

and elsewhere, have enacted laws requiring companies to have 30 percent of

their boards comprised of women.

The Thai central bank has had a female governor, from 2006 to 2010, and at

least half of its managerial staff is female. At the Stock Exchange of

Thailand, the president is female, as are almost 70 percent of workers. Thailand has also had a female prime minister,

Yingluck Shinawatra, the sister of the ruler deposed in a 2006 coup.

"Female executives must show much more superior or outstanding managerial

skills and competency over male colleagues to receive promotions," said

Kesara Manchusree, the president of the Stock Exchange of Thailand. "It’s

a very tough job to balance business and family roles."

Male-dominated

Across the Asia-Pacific region, the proportion of women in senior business

roles has climbed to 25 percent this year from 23 percent in early 2016,

according to a global survey released Wednesday by consultancy Grant Thornton.

At the same time, the percentage of Asian companies with no female

representation in senior management surged to 36 percent from 25 percent in the

same period last year.

At Kasikornbank, Kattiya remembers a male-dominated organisation when she

joined about three decades ago, after her father suggested banking as a career

rather than her initial choice of advertising. 

Kasikornbank had almost no female employees until around 1984, according to

Chatchai Payuhanaveechai, who worked there for about three decades, including

as a senior executive vice president. He’s now president of the state-owned

Government Savings Bank.

"Even at my bank, when we open up new positions, about 80 percent of

applications have been from female candidates – this is the trend in Thai

banking," he said. "I think the new male generation wants to be

entrepreneurial. We’re now in a reversal where we’ve been promoting the hiring

of male employees.”

Female employees in finance and insurance numbered 314 300 in the third

quarter of 2016, according to the latest government data. For men, the number

is 244 400.

Today at Kasikornbank, the 14 000 female employees outnumber men 2-to-1. The bank outperforms its peers: 2016 return on equity was 13

percent compared with the 11 percent average of Thai lenders, according to data compiled by Bloomberg.

As its first female president, Kattiya focuses on finance, human resources and

integration across departments. With an MBA from the University of Texas

at Austin, she’s one of two women on the bank’s 26-strong management team,

according to the bank’s website -- and was an unusual presence at a large

dinner with Vietnamese Prime Minister Nguyen Xuan Phuc at the World

Economic Forum annual meeting in Davos in January.

"I was the only woman," she said, showing a picture on her mobile

phone. "There must have been at least 30 people -- business people from

Russia, Japan and Thailand. So it’s still a male dominated world. Women are

playing major roles in the business world, but there is still more to

come."

-With assistance from Chanyaporn

Chanjaroen and Lee J Miller.

BLOOMBERG

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