CIMB Thai Bank (CIMBT) has expanded its wealth management services to cover the mass market by offering offshore investment products with higher returns.
CIMBT is offering offshore deposits and offshore bonds to customers in the mass market segment, which comprises customers with deposits of less than 1 million baht.
Besides positive returns, risk diversification is a key factor providing investment opportunities to the mass of customers, said Thiyachai Chong, the bank’s executive vice-president and head of the Wealth & Preferred segment.
For instance, the bank offers a US deposit package with maturities of 3-12 months and interest rates in the range of 3.33-4.18 percent per year. The bank requires a minimum deposit amount of $2,000 for the offshore deposit account.
CIMBT also offers offshore bonds covering both government treasuries and corporate bonds at investment grade with an average return of 4-6%.
“Besides attractive returns and risk diversification, the bank’s gateway to an offshore investment strategy would also help improve financial inclusion and support the bank’s wealth management business,” Thiyachai said.
CIMBT defines its customers in the area of wealth management services as being customers with minimum assets of 3 million baht.
The bank aims to grow its wealth management business by 10 percent year-on-year in 2023 in terms of both customer base and assets under management. CIMBT plans to use three core strategies: products covering both onshore and offshore, attractive returns or pricing strategy, and digital channels for its business expansion.
Over the longer term, the wealth management business segment should grow by 10 times, and digital channels and partnerships are the key strategies to expand the business in accordance with the positive growth of wealth management business worldwide and tougher competition.
In this scenario, the bank’s existing traditional channels and mobile banking platform might not be enough to catch up with the changing landscape of business globally and locally, Thiyachai said.
In 2022, CIMBT recorded growth of 390 percent in bond subscriptions via the bank’s mobile banking app, and 370 percent growth in terms of deposits via its digital platform due to the changing behaviour of customers and a low-base effect. The bank’s overall digital transactions under its wealth management services are expected to represent 70 percent of total transactions under its wealth management offering this year, up from 50 percent last year.
The bank has offered investment loans for wealth clients since the second half of last year and received a positive response with a 250 percent growth rate in the second half of 2022, Thiyachai said.
https://www.bangkokpost.com/business/2495174/offshore-investments-to-lure-mass-market
Category: Thailand
