KBank's private banking unit
KASIKORNBANK has spun off its private banking business from retail banking as a new business division to increase its flexibility to run wealth management and to cash in on the opportunities in this segment.
KBank acknowledges that the requirements of high-net-worth clients (HNWs) are different from those of general retail customers and they hold more products than general customers. The bank can expand income from this segment if it has the products that meet the requirements of rich customers, said Predee Daochai, president of KBank.
HNWs on average hold around six products, compared with two or three held by mass clients, so the bank has seen an opportunity to bring in more income by catering to wealthy clients.
The bank and its private-banking partner, Switzerland’s Lombard Odier, will jointly develop financial products to serve HNWs. Predee said KBank next year would offer Lombard financing and family services to help clients keep their wealth and to transfer it to their successors in the future.
KBank will officially introduce the new business division at a press briefing next Tuesday.
Jirawat Supornpaibul, executive vice president and head of private banking business, said the bank had around 9,000 private banking clients with total assets under management of Bt750 billion.
The country’s sluggish economy has not hurt the income of wealthy clients, who continue to generate healthy income for the bank, he said.
He added that HNWs who used to invest in deposit accounts had shifted their investments to funds to get higher returns.
The bank yesterday held a seminar titled “Global Investment Solutions and Wealth Management” to help customers prepare for the new normal in the economy, which might influence their investment decisions.
Jirawat said that under the new normal, the United States was expected to resume its traditional role as a consumption giant only slowly, while China has changed its position from a manufacturing base for export to relying on domestic consumption.
