Consumer bank DBS Singapore is aggressively expanding its wealth management business in Thailand through subsidiary DBS Securities (Thailand), aiming to triple assets under management (AUM) here to 300 billion baht within two years.
Half of the targeted AUM should come from high net worth investors, said Edwin Tan, DBS market head for Thailand and the Philippines.
As of February, the company had 100 billion baht worth of AUM in Thailand.
Thailand has about 900 high net worth individuals, classified as having a net worth of US$30 million or more, according to DBS. The number is expected to increase by 15% to more than 1,000 by 2029, said Mr Tan.
"Thailand has potential to grow in this segment, especially family businesses, entrepreneurs and the corporate sector," he said.
"An increasing wealthy segment is driving unprecedented demand for sophisticated wealth planning services, family governance, and the need for corporate financing."
Thailand is also a rapidly ageing economy on the brink of a third-generation wealth shift, said Mr Tan.
With the majority of the country's wealth generated from family-run businesses, there is a need to support entrepreneurial families in the region and beyond, partnering with them to navigate international boundaries, embrace new ventures and plan for their future generations, he said.
Wealthy individuals in Thailand have been relatively conservative with offshore investment, but that is starting to change as their personal wealth grows, said Mr Tan.
"This is driving demand for holistic wealth management services with global investment strategies," he said.
Investors are advised to diversify globally to capitalise on higher returns driven by interest rate differentials compared with the local stock market, while investing in secular trends such as US tech and artificial intelligence (AI), which have rallied strongly in 2024, according to DBS.
Shee Tse Koon, group executive head of consumer banking and wealth management and country head of DBS Singapore, said since February the company has invested in Thai franchises, offering the online trading platform mTrading in March.
"DBS is well-positioned to serve the growing pool of wealthy Thai clients through its pioneering one-stop onshore and offshore proposition. This is a swift response to strong demand for private assets this year," said Mr Tse.
DBS offers AI-powered digital and investment advisory capabilities that help retail customers better manage their money.
The bank has more than 2 million monthly active users, he said.
Thais are now allowed to invest directly in overseas markets, which is an opportunity for investors to diversify risk, and wealthy Thai groups have great growth potential compared with the surrounding region, Mr Tse said.