Siam Commercial Bank’s (SCB) wealth management business, SCB Wealth, plans to launch digital platforms to expand its wealthy young client base, expecting to have 1.3 million users by 2024.
According to Yunyong Thaicharoen, senior executive vice-president and chief wealth banking officer at SCB, the bank would primarily target young, affluent clients who are comfortable with digital platforms.
As the young and affluent digital customer base grows with Thais’ adoption of digital technology, SCB expects to increase its customer base to 620,000 by 2023.
Digitally wealthy clients are still actively investing despite the global economic slowdown and the increased stock market volatility. Although their investment transactions have decreased, the decline is less pronounced than for other consumer sectors, Mr. Yunyong explained.
For this new market, SCB Wealth’s minimum assets under management (AUM) requirement is 2 million baht per client, which is the same amount the band requires other wealthy clients to invest.
The firm sees its SCB Easy mobile banking app as a key investment channel to attract wealthy young people.
SCB Wealth hopes to increase this customer base to 1.3 million by 2024 thanks to digital wealthy consumers’ great growth potential, Mr. Yunyong stated, adding that this customer segment’s AUM is also expected to increase.
According to the firm’s latest reports, SCB Wealth currently has around 400,000 clients, accounting for a market share of 40%. However, the bank expects to expand its customer base by 12% each year through 2024.
Also, SCS expects its wealth management business to grow its total AUM to 2 billion baht within two years. Mr. Yunyong said he relies on its relationship managers’ experience, quality advisory service, open platforms, and innovative products to achieve that goal.
SCB’s senior executive vice-president also stated that the bank was ready to serve high-net-worth clients by offering them innovative investment products worldwide, in addition to its existing multi-asset investment and risk diversification packages under its partnership and open architecture strategy.
Moreover, SCB Wealth plans to team up with other SCB subsidiaries to offer clients a full range of financial solutions through physical and digital channels. Currently, SCB Securities and SCB Asset Management provide clients with advisory and investment services through digital platforms.
According to the bank, SCB X, the parent company for SCB and the SCB Easy app, wants to continue building digital platforms to better meet its client’s needs.
