The Management Guidelines to Strengthen the Education and Knowledge of Members of a Cooperative Credit Union in South Thailand

The aim of this paper is to study the key points of managing cooperative credit unions in south Thailand and how to strengthen the education and knowledge of the management team, staff and members. This paper is based on a qualitative method via in-depth interviews and a focus group with members and committees of cooperative credit unions in south Thailand; data were analyzed using content and descriptive analysis. Results showed that the most problematic issue is a lack of transparency in the management and patronage systems, leading to corruption. In addition, the key points for developing guidelines for this type of credit union include members’ understanding and knowledge about the objectives of the cooperative system; updated regulations and legal measures concerning a deposit protection system; revised rules and regulations for loan policies, human resources, and information technology; government policies for strengthening cooperative credit unions; and allocating more budget to educate their staff and members, such as a training course and a visit to another cooperative credit union. In addition, the Cooperative Promotion Department and Cooperative Auditing Department of Thailand should improve the law and auditing method to strengthen and clarify the organization’s operations.


Introduction
Credit unions are the largest network of financial cooperatives in the world (van Rijn, 2022). A cooperative credit union is established on a voluntary basis by members in the same community, such as workers in the same factory, company, or educational institution. This type of credit union operates under the principle of democracy (one person, one vote); the members collect wealth together, and the credit union funds operations for members as borrowers to use for life. The members elect a board of directors, and the benefits generated are allocated to the members (Taylor, 1971). The objectives of a credit union are to promote society's well-being, peace, and economic benefits. For example, it may help people establish a livable income, save assets for the future as appropriate, and foster families' happiness based on the culture of each community. In addition, a credit union unites people and allows them to cooperate to achieve happiness, prosperity, and fullness of life (Homglin, 2015) The difference between banks and credit unions is that banks are for-profit companies or partnerships whose goal is to make money for stockholders, and credit unions are nonprofit (Fay, 2022). Credit unions are (first and foremost) financial institutions, which primarily accept deposits (or shares) and make loans (McKillop & Wilson, 2010). In Thailand, the first cooperative credit union was informally established in the Huaykwang slum community, Din Daeng, Bangkok, in 1965; however, the first registered cooperative was the Mae Mun Credit Union Cooperative Limited in the Ubon Ratchathani province, registered in January 1979 (Cooperative Promotion Department, 2008). After 1969, Thailand's Cooperative Promotion Department encouraged various credit union groups to register as legal savings cooperatives, and its establishment of credit union cooperatives spread to various communities in urban and rural areas across Thailand. These unions operate based on the principle of cooperation among members, encompassing unity and voluntary democracy to maintain equal opportunities and fairness (Chunharungroj et al., 2018) Credit unions in Thailand offer many types of services, such as typical loans intended for purchasing land, cattle, or housing, or to create small enterprises; risk-protection programs for borrowers in the event of permanent invalidity or death; life insurance for members who wish to save for their old age; risk funds for members in the event of fraud or default; mutual funds to cover cremation costs, and specific programs for women and young people (Sakaeo Provincial Cooperative Office, 2017). However, problems with credit union cooperatives in Thailand include corruption and the lack of strong auditing (Kittiwiwatanapong & Yossakrai, 2016), transparency, and management (Chutnitikun & Mungmuang, 2020). To solve some of these issues, this paper covers key points for managing cooperative credit unions and strengthening them through education and knowledge for sustainability; the results can inform guidelines for cooperative credit unions in other places.

Literature Review
The literature review is based on cooperative credit unions, types of services, challenges of cooperative credit unions, and management of cooperative credit unions, as follows.

Cooperative Credit Unions
Cooperative credit unions are nonprofit financial institutions that provide financial services to members on the basis of a common bond; they emphasize building social capital and promoting empowerment among members (McKillop & Wilson, 2015). A credit union is governed by its members, who elect unpaid volunteer officers and directors from within the membership. Each member has one vote, regardless of the size of their financial stake (Goddard et al., 2009). The capital of credit unions comprises its members' deposits (Kang et al., 2022). Credit unions help to reduce poverty and increase the living standards of members and communities (Tulus & Nerang, 2020). As mentioned above, credit unions are member-owned financial institutions managed by members, and their purpose is to raise savings to be used as capital to provide members services in the form of loans at an appropriate interest rate; however, credit unions are not focusing on maximizing profits because profits are allocated to members as welfare benefits.

Types of Services
A credit union is a type of cooperative in which people are committed to economic and social development because they believe that the union's methods and principles can be used to develop individual and societal economies. In addition, credit union cooperatives have procedures and regulations in place, with the condition that members must accumulate savings within the cooperative at fixed amounts and intervals (Saeteng, 2015). Many credit unions provide financial services similar to banks in terms of savings and loans. In addition, credit unions may offer interest-bearing business checking accounts, commercial loans, agricultural loans, and venture capital loans. Credit unions also deal in investment products, such as bankers' acceptances, cash forward agreements, and reverse purchase transactions. (Feinberg, 2001;Schmid, 2006)

Challenges of Cooperative Credit Union
Credit unions face many problems in achieving good financial performance and improving the quality of members' lives. In addition, they often lack the human resources necessary for efficient management, leading to problems with a variety of governance systems and levels of discipline in their implementation. Coordination between related parties in credit union management is weak, and many credit unions focus on the financial aspect of the business instead of on empowerment (Kusuma et al., 2022). The challenges facing small credit unions include the cost of technology, board leadership engagement with management, limited member growth, income, healthcare costs, and increasing overall costs (Credit Union National Association, 2021). In addition, many members lack knowledge and understanding of risk management in terms of accepting deposits for a cooperative credit union. Member participation is often inadequate; most members lack the potential and readiness to perform their duties as owners and stakeholders (Srasom & Tanarach, 2017)

Management of Cooperative Credit Unions
Regulations and legislation enforce the standards and transparency of cooperate credit unions, and credit unions should cooperate with the supervision of government agencies (Poprawa, 2009). Government policies effect cooperative credit unions' performance. In addition, returns on investment and equity depend on governance practices by the board of directors and the management team, and governance practices influence membership growth (Kumkit et al., 2022). In addition, gender diversity on management teams can produce a greater variation of opinions and ideas, resulting in better decisions from management (Saeed et al., 2018). A credit union's efficiency is related to interest rates on loans and deposits, the volume of credit operations with members, the jel.ccsenet.o volume of

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Guideline for Managing Cooperative Credit Unions in South Thailand
As mentioned, a guideline for managing cooperative credit unions in south Thailand was developed as follows.
1) Create understanding and knowledge among members about the objectives of the cooperative system. For example, emphasize saving more than borrowing. A credit union cooperative is established in a community of members, so members of the cooperative have a convenient, fast money-collection place without having to waste time traveling to deposit money far away, such as banks, regardless of the amount of money. In addition, when members have trouble or need to spend money, they have the right to request a loan from the cooperative at a fair interest rate; the amount of money that members can borrow depends on their needs, their ability to repay, and the accumulation of members' own shares. Moreover, credit union cooperatives offer a range of services depending on members' needs and the funds the cooperative has, such as those earmarked for member relief services or welfare for members, which contributes to the stability of the members and their families.
2) Update regulations and legal measures for a deposit protection system. Establish guidelines for the development of management systems and supervision. Four approaches to supervising credit union cooperatives and cooperatives more efficiently include 1) developing an inspection service for reports and financial business to set standards similar to those of other financial institutions, 2) supervise the financial affairs of credit union cooperatives, 3) improve the structure of the corporate governance system, and 4) develop database and information systems and ensure they are up to date.
3) Rules and regulations for loan policies. The board of directors must establish a clear policy for loan allocation and an efficient system for monitoring debt payment; it must also set criteria for borrowing money customized to borrowers' ability to repay. In addition, a credit union must have policies and guidelines to help each debtor appropriately in the event that the debtor has problems repaying their debt. 4) Human resource management. Develop specific skills for the executive committee and staff allowing them to exchange knowledge with other successful cooperatives or organizations. Develop the potential of internal teams as relevant to their job descriptions. 5) Information technology management. Develop a program for accepting deposits, withdrawals, and borrowing to support the members' use. A fast, convenient web application would also be suitable for working members' transactions (possibly a mobile application). In addition, an application could help maintain a large database and grant easy to access to security protection by using an authentication system to prevent risks by verifying the correctness of program information. In addition, the system will be able to provide transparency and enable better inspection.
6) Government policy for strengthening cooperative credit unions. The state and cooperative credit unions must participate in the development of the credit union movement or strengthen the rule of law in administration and conflict resolution management. Government agencies should participate in all activities in collaboration with credit unions. In addition, the Cooperative Promotion Department of Thailand should revise and improve the laws related to cooperative credit unions, strengthening credit unions and allowing them to meet standards. The Cooperative Auditing Department of Thailand should emphasize consulting and improving management efficiency in finance, accounting, and auditing development concerning technology and continue to monitor financial reports from cooperatives and farmers' groups. This department should also strengthen knowledge and promote accounting management for cooperative members, including farmers' groups, professional groups, and community enterprises. Finally, credit unions must build strength and confidence in cooperatives between other credit unions to promote knowledge exchange and connect businesses to create networks for a sustainable organization.
In addition, to avoid corruption problems that were found in Thailand's cooperatives, the Thai government should build and develop an effective promotion, supporting, and supervising system for the cooperatives; create an efficient system for the supervision and internal audit of cooperatives; specify the policies, laws, regulations, and ethics for transparent operations; and boost cooperation among cooperative movements to prevent fraud.