SCBS invests big in AI, robotics to offset disruption

SCBS invests big in AI, robotics to offset disruption

SCB Securities (SCBS) aims to invest up to 400 million baht in robotic technology and artificial intelligence (AI) to upgrade its business operations and prevent long-term disruption from financial technology.

The company has allocated funds to invest in a new trading platform and investment data for multi-asset classes, excluding digital assets, whereby the investment process will commence in October, said chief executive Kampol Jantavibool.

Investment in robotic trading and AI are viewed as preparation for future online trading, said Mr Kampol.

SCBS has a customer base of 100,000 accounts, of which 30% are classified as active trading.

The online trading trend is increasing and the company wants to invest in a new trading platform to prepare, he said.

SCBS aims to have 200,000 accounts in three years' time, said Mr Kampol.

He said SCBS will become the Thai first brokerage firm offering a multi-asset trading platform, including stocks, bonds, gold and other debt instruments on global and local exchanges.

The company will seek the Bank of Thailand's approval to allow transfers of investors' baht-denominated trading accounts into other currencies to invest in global securities assets on a real-time basis, he said.

Normally, it takes more than one day to transfer the baht into other currencies for global securities trading.

The company also plans to increase the number of exchange traded funds by the hundreds, to serve as an alternative for investors this year, said Mr Kampol.

SCBS's market share currently stands at 4.1%, ranking seventh in the industry.

The company aims for a 6% market share by 2020 through business diversification into derivative warrants, investment advisory services and wealth management, he said.

The trading model for Thai investors must change as they need to better diversify their assets for better risk management and higher returns, he said.

People in Singapore, for example, invest 80% in global assets, while Thai investors still have a "home-bias" investment view, whereby asset allocation is 80% domestic, said Mr Kampol.

For those opening their global trading accounts with SCBS, the company will waive the transfer fee, while the trading commission fee is 0.25%.

SCBS recorded a net profit of 500 million baht last year, a figure it looks to increase to 600 million in 2018.

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