Citibank targets investment account holders
Citibank Thailand is highlighting investment-account customers as key revenue drivers, as more clients seek products generating a good return amid the general trend of low interest rates.
Vira-anong Phutrakul, managing director and head of retail banking, yesterday said investment accounts had become the preferred option for an increasing number of clients previously holding regular savings accounts, as the interest that is available on basic accounts cannot beat the rate of inflation.
The bank has two tiers of depositor: general depositors and Citi Gold depositors with investments of at least Bt2 million.
Citi Gold customers are recommended by relationship managers to open an investment account. Investment plans are then suggested and a rate of return matching each customer’s requirements and risk appetite is decided upon, before forwarding the accounts to fund managers locally and overseas.
Citibank Thailand’s number of investment accounts has surged 150 per cent from last year. Customers are satisfied with the platform and services because they have a relationship manager as their financial adviser, which helps them ride out market and interest-rate volatility, she said.
The bank currently has some 10,000 investment accounts, which have assets under management of Bt20 billion.
Vira-anong said retail-banking competition next year would intensify, which meant the bank had to find added services and ensure accurate investment information to customers in order to maintain portfolio growth.
Affluent customers are expected to demand the utmost efficiency in conducting transactions, especially in relation to the use of digital banking, while the upcoming Asean Economic Community will spur greater transaction volumes between Thailand and other countries, she said.
Digital financial transactions in the near future will increasingly be made via smart phones instead of computers, she added.
Meanwhile, Citibank yesterday launched a |digital banking service to capture "global-|minded" customers wishing to manage their |own transactions.
The bank’s clients can transfer funds between Citibank accounts worldwide free and in real time thanks to the service, which is available in 30 countries, including Thailand.
