DBS Bank aims to double wealth assets by 2023
DBS Bank plans to double its wealth assets under management (AUM) in Thailand from S$4 billion to S$8 billion by 2023 through the country's growing pool of high net worth individuals (HNWIs).
The bank has established a partnership with DBS Private Bank and DBS Vickers Securities Thailand to target HNWIs who are looking to diversity their investment portfolios and access investment opportunities overseas.
HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residences, collectables, consumables and consumer durables.
Thai wealth AUM have grown at a robust compound annual growth rate of 12.7% between 2010 and 2017, according to Capgemini's Asia-Pacific Wealth Report 2018.
Much of Thai wealth is held in family-owned businesses, accounting for more than 80% of the country's GDP and over one-third of listed firms on the Stock Exchange of Thailand, according to PwC's Thailand Family Business Survey 2019.
DBS Bank also aims to double its headcount for wealth relationship managers in Thailand by 2023 to cater to increasing investment demand locally.
"We believe the Thai wealth market holds immense potential, having witnessed Thai investors' growing sophistication and receptiveness to investment ideas, and the Bank of Thailand's encouraging regulatory stance towards offshore investments," said Sim S Lim, group head of wealth management and consumer banking at DBS Bank.
Pattera Dilokrungthirapop, chief executive at DBS Vickers Securities Thailand, said HNWIs in Thailand are relatively conservative with offshore investments, but this is beginning to change.
"As their personal wealth grows, we're seeing corresponding demand for holistic wealth management services and global investment strategies," said Ms Pattera.
DBS Vickers Securities Thailand plans to double its AUM from 100 billion baht to 200 billion within five years, with a planned increase of HNWI accounts from 100 accounts to 1,000 during the period, she said.
Some 90% of the company's AUM has been invested in local assets, but investors will have more opportunities to invest abroad via support from DBS Bank, which has a global network, said Ms Pattera.
For equity investment, the firm will focus more on using the Quant Module trading programme, which uses robotic tools to help investors with their investment decisions, she said.