SCB sets sights on dominating Thai wealth market by 2026

Bank will focus on aggressive expansion of Assets Under Advisement business, its CEO tells a press conference

 

Siam Commercial Bank (SCB) has unveiled an ambitious plan to secure top place in Thailand's wealth management sector by 2026, setting a 20% fee income growth target from the business. 

 

The bank’s strategy is based on aggressive AUA (Assets Under Advisement) expansion, increased digital adoption and enhanced customer satisfaction.

 

At a press conference on Tuesday, CEO Kris Chantanotoke highlighted the strong growth potential of the wealth management sector, particularly in Asia and Thailand, citing projections of the country’s AUA reaching US$1 trillion by 2028.

 

He emphasised that wealth management will be a key driver of SCB’s growth, forecasting double-digit average growth.

 



 

SCB's three key performance indicators (KPIs) for achieving market leadership are: double-digit AUA growth, improved Net Promoter Score (NPS) from its current second-place ranking, and delivering investment returns that consistently outperform benchmarks.
  

The bank aims to double its AUA to 140 billion baht by 2026, from the current 70 billion baht.  It also plans to boost the proportion of active digital investors (making at least four transactions annually) to 30% from the current 15%, and grow foreign currency investment assets to 180 billion baht.

 

SCB’s strategy involves a segmented approach to client service. High-net-worth individuals will be served through a combination of digital channels and dedicated relationship managers, while technology-driven, low-cost investment solutions will be offered to clients with smaller portfolios. 

 

The bank has also introduced a “no gain no pay” fee structure for select funds, effective from October 2024, where fees are contingent on achieving performance targets.
  



 

These initiatives are projected to drive a 20% expansion in the wealth management business's revenue share by 2026, creating a new growth engine for the bank, which currently serves approximately 500,000 wealth management clients.

 


“Achieving these three key metrics will give us the confidence to compete effectively with virtual banks and secure our position as the number one wealth management provider,” Kris stated.


 

On the macroeconomic outlook, Kris forecasts Thai GDP growth of 2.5-3% in 2025, anticipating a stable economic environment bolstered by government spending.  He also expects the Bank of Thailand’s Monetary Policy Committee to adopt an easing stance, predicting one policy interest rate cut during the year.

(2025/02/26-00:00)