Siam Commercial Bank (SCB) plans to expand its wealth management customer base by 12% per year for the next 3-5 years, hoping to raise its fee-based income.
The bank has 400,000 wealthy clients, which includes high net worth individuals with minimum assets under management (AUM) of 2 million baht, which represents a market share of around 40%.
The bank wants to increase the customer base by 12% annually for 3-5 years, utilising SCB Julius Baer, a joint venture private banking business with the Swiss-based wealth management service provider, to grow the number of clients, said SCB chief executive Kris Chantanotoke.
Partnerships, open architecture and digital platforms would be the key strategies to grow the business segment, he said.
For the next three years, SCB aims to increase digital wealth clients to 1.3 million, said Mr Kris.
"These efforts should help SCB achieve its goal of becoming the No.1 digital bank for wealth management, in line with our vision of becoming the 'Digital Bank with Human Touch' strategy," he said.
Philipp Rickenbacher, chief executive of Julius Baer Group Ltd, said the company is dedicated to advancing the top-tier wealth management market in Asia, with Thailand a key country in Julius Baer's efforts to broaden the scope of investment services.
"We believe there is significant potential for growth in the private banking sector in Thailand," said Mr Rickenbacher.
"As the investment landscape in Thailand evolves, the strategic alliance between market leader Julius Baer and SCB offers an unparalleled wealth management experience for our clients."
Julius Baer's pure-play business model and wealth management expertise, combined with SCB's deep local insights and expansive network, allow the joint venture to deliver targeted, high-impact and cutting-edge advice to local customers, he said.
SCB Julius Baer rolled out yesterday "The New Wave of Wealth" strategy for 2023. The strategy calls for the company to focus on quality product offerings to customers, both for onshore and offshore investment solutions.
Service quality from knowledgeable local relationship managers and a digital platform service should help to solidify the financial service to high net worth clients with minimum AUM of 100 million baht, said the joint venture.
