By SUCHEERA PINIJPARAKARN
“We will look after this kind of customer because we believe they must look for new investment or deposit products that sustain their wealth,” Weidt Nuchjalearn, a senior executive vice president of Krungthai Bank, said last week.
Bondholders will be paid starting today.
After enjoying a yield of 6.1 |per cent, they are expected to |reallocate their savings in pro-|ducts that give a good return.
KTB will adjust the terms of fixed deposits to offer the bondholders a “suit yourself” product with the goal of drawing at least Bt20 billion-Bt30 billion in new deposits from them.
Kris Chantanotoke, executive vice president for wealth management and bancassurance at Bank of Ayudhya, believes several banks are developing competitive products, either deposits or funds to appeal to those cashing in savings bonds.
However, the redemption of this issue is not leading the industry to launch new products because banks cannot market a higher rate. The policy rate was already low and may go lower in the next meeting of the central bank, he said.
Weidt of KTB said his bank was actively looking for customers with Bt1 million in deposits, and the 10-year government bond holders were targets.
Of the 15 million accounts at KTB, about 200,000 have balances of Bt1 million and up.
This kind of customer wants convenient services from banks, so KTB has trained relationship managers to serve them.
“If we cannot service this segment, we might lose the customers to medium-sized and small banks,” he said.
Medium and small banks are aggressively chasing retail customers holding deposits in the seven digits with a pricing strategy. Several banks have shifted to retail banking as corporate customers can find sources of funds on their own.
Each bank wants to ensure enough liquidity to support credit expansion and cushion against the global financial volatility, he noted.