Bangkok--23 Apr--KASIKORNBANK
KASIKORNBANK has introduced a new asset management strategy with its “Open Architechture” sales structure, offering the best products in accordance with customer demand and maximum benefits. Two asset management allies, Aberdeen Asset Management and Manulife Asset Management (Thailand), have been added to diversify product types for complete service. The Bank will soon partner with several additional leading businesses, and is expected to increase its customer base in this segment by 8 percent, with approximately 50 billion Baht of assets.
According to Mr. Jirawat Supornpaibul, KASIKORNBANK Private Banking Business Head, customers of the High Net Worth Individual Segment (HNWI) are those who have individual wealth with KBank and subsidiaries of more than 50 million Baht each. They demand a variety of savings and investment products along with foreign investments in order to increase total returns, as average returns from interest rates of local financial institutions remain very low. Also, Thailand’s economic conditions are expected to remain sluggish this year.
Therefore, KBank’s private banking business is introducing an “Open Architecture” sales structure to this customer segment, offering the best investment products available in the market, with diversity and maximum benefits meeting customer demand. Under this new strategy, customers can choose to invest in any non-KAsset funds which match their interests.
At this initial stage, the Bank has selected two asset management firms with top performance in the asset management industry to provide their products to KBank customers. They are Aberdeen Asset Management and Manulife Asset Management (Thailand), which have asset management expertise for investment at home and abroad, including Asia and Europe. As a result, customers will have as many as 90 funds to choose from. The Bank will soon make similar collaborative agreements with three additional asset management companies for Private Banking customers seeking the best and most-diversified investment products.
Mr. Jirawat added that KBank Private Banking will organize special activities for customers through the rest of 2014, including quarterly activities to provide intensive knowledge in money and investment as well as economic situation analyses. Customers will also be offered relevant advisory service from the Bank’s allies, which have diverse investment expertise. Apart from investment seminars which will be held from an academic perspective, other lifestyle activities to satisfy customers’ needs will also be available.
KBank currently has approximately 7,600 customers in the HNWI segment – representing 35 percent of the total of 21,400 HNWI clients in Thailand – who have a combined asset value of 570 billion Baht. Their assets are increasing in accordance with the growing economy, particularly among customers in large provincial cities, where the economic growth rate is higher than the national average. KBank expects an 8-percent increase in HNWI customers this year, representing around 50 billion Baht of assets under management (AUM).