Thailand-based Kasikornbank (KBank) is reportedly planning to target wealth clients in Laos, Myanmar, as part of its strategy to boost wealth management business beyond domestic boundaries.
By acquiring affluent customers in neighboring countries, the Thai bank aims to achieve 10% growth in assets under management (AUM) for its wealth management business in 2014, Bangkok Post reported.
KBank executive vice-president Pakorn Partanapat told Bangkok Post that wealth among Laotian business owners is increasing, propelled by their dynamic economic growth.
This group will be KBank’s main focus; he told the publication, adding these customers go to border towns in Udon Thani province for financial and healthcare services as well as shopping.
KBank’s Udon Thani branch serves many Laotian customers by offering deposit and bancassurance services, according to the news portal.
Besides Laos, the lender is also eyes wealthy clients in Myanmar.
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KBank reportedly needs at least requires assets of THB10million (US$307929.19) for the bank’s Wisdom wealth service.
KBank has a client base of 118,000 wealth customers with a combined AUM of THB1.1 trillion (US$33.87billion), which equates approximately 80% of the industry’s 153,000 wealth clients.
Pakorn told the publication that the bank targets 20% growth in its wealth management customer base this year.
In addition, KBank is considering launching a Vientiane branch in Laos, with the Wisdom centre offering financial services exclusively to local wealthy customers, Pakorn concluded.