Kiatnakin Phatra Financial Group (KKP) is focused on expanding its wealth management customer base to younger people and the mass affluent in its Phatra Edge segment after seeing growth there.
Over the past five years, the number of wealthy young people has grown both in numbers and relative asset size, a trend expected to continue over the next five years, said Vasin Sukwatwibul, Phatra Edge's senior vice-president and head of investment advisory.
Technology development and digitisation offer high growth potential for this customer segment, particularly in small- and medium-sized enterprises (SMEs) and startup companies, he said.
The company defines Phatra Edge customers as those with assets under advice (AUA) of 2-10 million baht. In general, wealthy individuals are those aged over 30, with the younger members of that category working as executives and small-business owners.
KKP set up the Phatra Edge segment in 2016.
The group's wealth management service classifies its customers into three segments. Apart from Phatra Edge, the other two are affluent (those with AUA between more than 10 million baht and up to 30 million baht) and high net worth (those with AUA above 30 million baht).
KKP aims to raise the number of Phatra Edge customers or the mass affluent segment to 110,000 with combined AUA of 50 billion baht by 2021, up from 74,000 customers with AUA of 30 billion, Mr Vasin said.
The company's open architecture platform, conducted in partnership with 20 asset management firms, is intended to facilitate business expansion. Marketing campaigns and technology development are also eyed to support service growth.
KKP has adopted an online platform and mobile app to serve wealthy clients. Mass affluent customers, in particular, are familiar with technology, and they prefer investing via online channels.
"Around 50% of total mass-affluent customers are on a digital platform," Mr Vasin said. "We will continue to upgrade our mobile app features and gradually push our remaining customers to go digital, as it is more convenient and cost-efficient."
Phatra Edge has 16 investment advisers and eight staff members overseeing its financial solutions centre, largely focused on long-term planning.
