Yuanta Securities Thailand will shift its focus towards wealth management over the next three years as this business model is projected to lead to long-term sustainable growth.
There is a need to restructure as trading fees will shrink on an annual basis because of free negotiations between brokers and high net worth investors, while price competition from discount brokers has also led to lower commission fees, said chief executive Boonporn Boriboonsongsil.
Although retail brokerages are allowed to charge commission fees of up to 0.25%, the ratio averages 0.14-0.15%, according to the Association of Securities Companies (Thailand).
"Restructuring our business model from brokerage trading to wealth management and increasing other related businesses will help long-term growth," said Mrs Boonporn.
The firm's new business model also covers financial advisory services, IPO listings on the Thai bourse and becoming a leading innovative broker through providing artificial intelligence and index forecasting tools, she said.
Taiwan's Yuanta Financial Group, the parent company of Yuanta Securities Thailand, has recently increased capital for its subsidiary to 4.5 billion baht, with the aim of upgrading the firms efficiency and competitiveness among its peers.
Based on its current capital, Yuanta Securities has the ability to provide up to 20 billion baht in margin loans and can engage in other securities-related businesses in the future.
Mrs Boonporn said the company also aims to increase its market share to 5% in 2018 from 3% at present.
The firm opened 21 new branches during the first eight months this year, bringing the total to 33, including its Bangkok head office, she said.
Up to three new e-branches are targeted to be opened by year-end, with five more expected next year.
The firms investment consultants staff, previously classified as marketing consultants, has risen to 406 from 120, with the majority of them moving from Maybank Kim Eng Securities Thailand (MBKEST).
Yuanta Securities has 60,901 trading accounts, 60% of which are designated as online trading and the rest as traditional trading.
Meanwhile, Yuanta Securities said that it will not settle with MBKEST in a lawsuit, adding there is evidence showing its executives and employees did not breach any regulations regarding claims it used confidential company information for their own benefit.
The company is ready to defend itself against any charge in court, particularly money laundering, said Mrs Boonporn.
Yuanta Securities recently issued a statement saying it is a securities company under the supervision of the Securities and Exchange Commission and the Anti-Money Laundering Office, and as such, the company has complied with securities laws by reporting its financial statements and other information.
In June, MBKEST issued a statement saying the company had filed a lawsuit at the Labour and Civil Courts against its former executives and employees for breaching the code of conduct and for using confidential company information for their own benefit.
Earlier, Mrs Boonporn, along with 200 heads of sales and marketing staff, quit MBKEST and defected to Yuanta Securities.
To increase confidence among investors and stakeholders, Yuanta Securities' parent company recently sent its internal audit committee to investigate and approve the working system of its Thai subsidiary. In line with that task, Yuanta Securities appointed PricewaterhouseCoopers to work as an auditor, demonstrating the firm is working efficiently and transparently, said Mrs Boonporn.
