BAY revamps system to woo wealthy customers
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Bank of Ayudhya is going aggressively after wealthy customers by segmenting them according to assets under management (AUM) and delivering appropriate financial products to each group.
Behind the increased attention to the well heeled is the lowering of deposit protection in August from Bt50 million to Bt1 million per bank per account.
“This year the marketing campaigns for affluent customers with AUM below Bt5 million by banks will be livelier than before because customers will look for alternative products and privileges. BAY must be prepared to secure its customers as well as attract customers from other banks,” Kris Chantanotoke, executive vice president, said yesterday.
AUM of the wealthy at the bank has reached Bt700 billion, or 40 per cent of its total deposits, he said.
Several banks have also set their sights on capturing affluent customers by offering benefits and services because those customers have more assets despite their fewer numbers.
Thailand has 40,000-50,000 affluent individuals with assets of at least US$1 million (Bt30 million) who account for 50 per cent of deposits at local commercial banks, regarded as a high proportion for banks.
Banks including BAY are placing greater importance on the affluent. To develop financial services that match up with their requirements, BAY has divided upper-crust customers into two segments – lower affluent, or those with AUM of Bt1 million to Bt5 million, and upper affluent, or those with AUM over Bt5 million.
The upper affluent contribute 40 per cent of the total deposits from the wealthy and the lower affluent 60 per cent.
BAY will provide Krungsri Exclusive Banking services to the two segments, comprising investment-portfolio planning and financial advisory, specialised personal services from relationship managers and financial privileges, Kris said.
The launch of the Krungsri Debit Exclusive Banking Card is the first move aimed at the upper affluent. The product combines a debit card, automated-teller-machine card and privilege card.
The 20,000 existing Krungsri Exclusive Card holders will receive the Krungsri Debit Exclusive Banking Card as a replacement.
The same card will be introduced to the lower affluent by midyear.
The overall affluent and high-net-worth market is divided into three tiers.
The mass affluent have AUM of Bt2 million to Bt3 million, the affluent have AUM of Bt5 million to Bt20 million and private banking customers have AUM of Bt20 million and up.
BAY targets growth in AUM from affluent customers this year at 15 per cent, up from 10 per cent last year.
