Banks focus on unique services as they target the wealthy
Banks are competing to design unique services to tap wealthy customers, who want something completely different from other client groups.
Banks realise high-net-worth customers are seeking something besides solely a high rate of return on investment from the products traditionally on offer.
Services are often even more important than financial products to these clients, who expect to get value-added services after entrusting a bank to manage their investment portfolio, said Kris Chantanotoke, executive vice president of Bank of Ayudhya (BAY).
As a result, banks are designing services and products based on customers’ lifestyles, which will also help foster relations between them and the banks, he said.
At BAY, services for high-net-worth clients are provided via Krungsri Exclusive Banking, which requires customers to lodge a minimum combined deposit of Bt5 million.
Krungsri Exclusive Banking customers are offered special services such as a limousine service to and from Suvarnabhumi Airport.
Such value-added services are designed to attract customers with assets under management (AUM) of below Bt5 million to increase their investment beyond that level, he added.
BAY will also launch financial-programme campaigns to persuade existing customers with deposits of less than Bt5 million to increase their AUM, Kris said.
The priority is to persuade such clients to upgrade to exclusive-banking customers, before BAY chases customers from other banks.
The meaning of “high-net-worth customer” differs from bank to bank, depending on each institution’s strategy.
BAY offers investment and elite experiences for clients with AUM of at least Bt5 million because it wants to be their partner as they build up their wealth, with business clients later also using the bank to take out loans.
Krungsri Exclusive Banking has 26,000 customers with combined AUM worth Bt250 billion. The number of customers and AUM have both grown by 20 per cent from last year.
BAY plans to strengthen its financial-consultancy services available through Krungsri Exclusive Banking, as the global economy next year will influence asset allocation, Kris added.
Kasikornbank, meanwhile, is banking on the provision of value-added services through its Wisdom Exclusive Centre concept, said Thawee Teerasoontornwong, first senior vice president.
The goal is to attract more wealthy clients from other banks and increase the deposits of existing customers from no more than Bt100,000 to at least Bt10 million.
The bank currently has 10 such centres, which are private lounges for high-net-worth clients with AUM of Bt10 million. Each lounge consists of a business zone and a relaxation zone.
Thawee said the bank was expanding the centres to 14 provinces, with some new centres located at different sites from its branches. Two of the current provincial centres are in Phuket and Chiang Mai.
KBank is the first bank to set up exclusive lounges located apart from branches in the provinces, which he said would enable it to attract more high-net-worth people.
“The behaviour of high-net-worth people in the provinces is no different from those in Bangkok. They want special services from banks, and not just a return on investment. We believe our special services will persuade high-net-worth clients to stay with us,” he said.
The investment cost for setting up each centre is Bt8million to Bt10 million, higher than the Bt5 million to Bt6 million required to set up a branch, he added.
