KTB fine-tuning 'Precious' to better reflect clients' status
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Krung Thai Bank will focus on reflecting a clearer social-status image for wealthy customers via its "Precious" services and the training of staff as certified financial planners, as it attempts to increase market share among individuals with assets und
Chainarong Eursithichai, KTB executive vice president Retail Business and Network Group, said the bank currently had a single-digit share of the wealthy-individual segment, which is the lowest among the country’s four largest banks.
This is partly due, however, to the fact that KTB entered the market segment later than its major rivals, he said.
KTB has positioned itself as a savings adviser and planner to wealthy customers who have assets under management (AUM) of between Bt1 million and Bt10 million through its Precious services, and for customers with AUM of more than Bt10 million via its Precious Plus services.
While the return on investment is similar to that on offer at other major banks, KTB accepts – as have its rivals – that luxury services are essential for this kind of customer as they expect to be treated in accordance with their perceived social status, said Chainarong.
Savings planner
The bank decided, therefore, that it should build up its image more clearly for wealthy customers by promoting brand awareness of its role as savings planner to such individuals, he said.
KTB hopes that by doing so it can double the number of Precious customers and their AUM by the end of next year.
The bank targets having 40,000 Precious customers by the end of this year, from 18,000 as of last December. Year to date, however, the number has climbed to just 20,000.
“Apart from increasing human resources to take care of these customers, we have to think about the privileges that represent their social status in order to secure existing customers and encourage newcomers to the bank,” he said.
Wealthy customers form an important market segment, as they enable banks to increase their product holdings. Moreover, this category of customer is assured of being able to subscribe to the full range of financial instruments that are sold by banks.
KTB therefore aims to increase the number of such product holdings for its Precious customers to more than five offerings, he said. “Precious customers can currently hold deposits, funds and insurance, and we will encourage them also to hold stocks and more insurance products,” he added.
KTB will also add more Precious lounges at some of its branches in Bangkok and in major provinces such as Chiang Mai and Khon Kaen, and is designing privileges programmes for Precious customers, which will be announced next year.
“We are placing more emphasis on Precious customers in the provinces, as KTB has a strong footprint upcountry and we must secure a [wealthy] customer base there. Services that represent their social status will, therefore, be offered to wealthy customers in the provinces, as well,” said the executive.
