SCB aims to build connections for its most affluent clients

Rungruang Sukkirdkijpiboon, first executive vice president and head of SCB’s customer segment, said its private-banking customers with assets under management (AUM) of Bt50 million and up needed to be able to trust their bankers, as most in this category are large-scale business owners. They want to build business connections to ensure the long-term success of their enterprises.

"The bank has wholesale, SME and retail banking, all of which have their own connections. Therefore, we should use the business connections of each sector to support the vision of private banking to be a trusted mechanism to make connections with the customers," he said.

SCB initiated this strategy through a forum in Phuket, where it invited private companies there to discuss their visions for the province in the future.

Pakachat Taychaburapanone, executive vice president and head of SCB’s affluent customer segment, said the bank chose Phuket for this forum because tourism will remain important to the Thai economy next year, and this province is a major destination for foreign tourists. Last year, Phuket attracted around 2 million tourists, though the spending per head is not seen to be growing as much as it should.

"This is a challenge for tourism companies in Phuket, to set strategies to increase income per capita. The forum is one way the bank could be a connection builder and partner to business owners in the tourism sector apart from being their personal wealth manager," she said.

At present, SCB looks after 5,000 private-banking customers with total AUM of Bt500 billion, 90 per cent of whom are large-scale business owners. The bank hopes that with the strategy of becoming a trusted partner and connection builder, the number of private banking customers will double to 10,000 by 2020.

The business of private banking is more complicated than what it provides its First Privilege Banking customers, which are mostly small and medium-sized enterprises with AUM of Bt10 million to Bt50 million. SCB has around 30,000 First customers with total AUM of Bt600 billion.

Tax reform is another important issue for private-banking customers, and at its next forum, SCB will provide tax information to them.

Pakachat said the bank had also seen many of its private-banking and First customers shift their investments from deposits to mutual funds, with the ratio of deposit to non-deposit products dropping to 50:50 from 60:40.

Another new trend is the increasing number of affluent people upcountry, which will be further driven by the Asean Economic Community late next year. This regional integration will have a positive impact on border provinces, so SCB is set to focus more on doing business outside Bangkok.

"Currently, 70 per cent of our First customers are in Bangkok, but in the next few years, most new affluent customers will be in the provinces," she said.