Thai Banks Lure Asia's Wealthy

[webfact]

Thai banks lure Asia's wealthy

SUCHEERA PINIJPARAKARN

THE NATION

Competition in the private-banking sector is likely to heat up as banks launch strategies to retain wealthy customers and attract the newly rich.

BANGKOK: -- As global growth has been shifting from Europe and North America to Asia, the number of wealthy Asians has been rising. Of 11 million high-net-worth individuals, defined as those with assets under management of more than US$1 million (Bt30 million), 3.37 million are in Asia, against 3.35 million in the United States. In Thailand, the number is estimated at 50,000. For Thai commercial banks, success in winning over these customers means success in expanding banking services in the coming years.

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Weidt Nuchjalearn, senior executive vice president of Krungthai Bank, said the number of high-net-worth clients in Thailand had been rising every year and their banks must assure them that their wealth will remain intact even in fragile economic conditions.

The high-income segment is unlike general depositors. These people have more choices for investments to build their wealth, so bank staff must be financial advisers. Relationship managers and a synergy of financial subsidiaries in KTB will strengthen wealth creation for this segment, Weidt said.

"Our goal is to maximise their satisfaction in terms of return from assets allocation and privilege services," he said.

Kasikornbank is targeting individuals with net worth of at least Bt10 million, who control 70 per cent of total deposits in the banking system, said Krisada Lamsam, senior executive vice president. The bank calls this segment "The Wisdom".

Demand from these individuals for special care will only rise, said Lalitphat Toranavikrai, head of private banking at Siam Commercial Bank. One factor is the lowering of the Deposit Protection Agency's insurance limit. Currently guaranteeing deposits of Bt50 million per person per bank, the agency will soon lower the limit to Bt1 million. This will require the wealthy to make better plans for their assets.

SCB categorises its wealthy customers in two tiers: "Private Banking" for clients with more than Bt50 million in assets and "First Privilege Banking" for those with Bt10 million to Bt50 million in assets.

According to Kris Chantanotoke, executive vice president of Krungsri Group, banks are pursuing these clients by aiming to be one-stop services for all available investment products. "Krungsri Exclusive" is now offered to clients with Bt5 million or more. The bank believes that if it stays with these clients - mostly owners of medium-sized companies - from the start, they will find it hard to flee to other banks when they are richer.

KTB currently takes care of 18,000 "Precious Plus" customers (those with assets worth more than Bt10 million) and 10,200 "Precious" (those with assets worth Bt1 million to Bt10 million) customers. These are targeted to rise to 200,000 and 40,000 by the end of this year. Their combined assets would then grow by no less than 20 per cent from Bt450 billion last year.

"We will capture more clients in the provinces as many see their fortunes skyrocket after land sales. Many see better prospects due to the upcoming Asean Economic Community," he said.

The luxury lounges the bank provides its premium clients in Bangkok will be offered to provincial clients as well.

SCB recently upgraded its private-banking services, covering members of heritage-wealth families whose net worth is above Bt50 million. Lalitphat said that for highly educated clients, there was an intelligence service to study investment products whose returns match their risk appetite. This service will be in addition to relations managers and private bankers who regularly assist them with general consultation.

SCB oversees about 7,000 private-banking customers with combined assets of more than Bt500 billion.

Aside from specialised advice and services, the premium clients enjoy lavish perks in keeping with their wealth.

KBank's The Wisdom members enjoy luxury services in the lounge at the head office and another one on the 12th floor of Sofitel So Bangkok Hotel.

Krungsri Exclusive members also enjoy a lounge. The combined assets of wealthy customers at Krungsri Exclusive this year is expected to exceed Bt300 billion, from Bt250 billion last year, in line with the target to increase the number of high-income customers to 35,000 from 26,000 customers.

-- The Nation 2013-02-04

[noitom]

Thai banks "lure." Very appropriate terminology for the entire Thai business marketing model. A lure. Thai girls have been "luring" farang tourists for decades. The banks are just now catching on to this Thai trick of the trade.

[siampolee]

When the effluent hits the fan here as it surely will in the financial sector those who piled up their deposits in the local banks will see those deposits vaporise before their very eyes, much the same as has happened in other financial sectors around the world.

Banks are no more than financial prostitutes who hire your money out to the highest bidder, the banks then call it their money and pay you a pimping fee for your stupidity generosity to them.

Banks provide you with an umbrella when the sun shines but they snatch that umbrella back very quickly when it starts to rain.

Fools and their money are soon parted.

A foole & his money,

be soone at debate:

which after with sorow,

repents him to late.

The precise wording of the exp

ression comes just a little later, in Dr. John Bridges'

Defence of the Government of the Church of England

, 1587:

If they pay a penie or two pence more for the reddinesse of them..let them looke to that, a foole and his money is soone parted.

http://www.phrases.org.uk

Edited February 4, 2013 by siampolee

[Thai at Heart]

All in all a very naff, pretentious article.

i think attract would be a much better word than lure.

[siampolee]

KTB currently takes care of 18,000 "Precious Plus" customers (those with assets worth more than Bt10 million) and 10,200 "Precious" (those with assets worth Bt1 million to Bt10 million) customers. These are targeted to rise to 200,000 and 40,000 by the end of this year. Their combined assets would then grow by no less than 20 per cent from Bt450 billion last year.

Instead of ,''Precious Plus, might it not be be better written as Precocious Plus ?

[LawrenceChee]

Good if you can afford to be in the program ...for the bank bashers...I am sure you have a well dug in your moo baan where it is more secured

[Robby nz]

Isnt this a direct contradiction to the other thread about lowering interest rates?

of course not this is only for the rich.

Edited February 4, 2013 by Robby nz

[Locationthailand]

The vultures of fiscal manipulation targeting the unsuspecting and ignorant population.

As per Thomas Jefferson...

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

And from Mayer Rothschild...

"Let me issue and control a nation's money and I care not who writes the laws."

The Federal Reserve and their banking puppets - the root of all evil globally as endorsed by politicians.

Edited February 4, 2013 by Locationthailand

[siampolee]

Good if you can afford to be in the program ...for the bank bashers...I am sure you have a well dug in your moo baan where it is more secured

Speaking from practical experience are we ?

Remember the compensation limits on bank accounts here in Thailand is but 1 million baht for Thai account holders and nil for foreign account holders.

1 million baht is but a trifling sum of money that wouldn't even buy a small town house in a terrace here.

More ways than one to have a secure financial future than feeding the bankers..

Edited February 4, 2013 by siampolee

[chiangmaikelly]

When the effluent hits the fan here as it surely will in the financial sector those who piled up their deposits in the local banks will see those deposits vaporise before their very eyes, much the same as has happened in other financial sectors around the world.

Banks are no more than financial prostitutes who hire your money out to the highest bidder, the banks then call it their money and pay you a pimping fee for your stupidity generosity to them.

Banks provide you with an umbrella when the sun shines but they snatch that umbrella back very quickly when it starts to rain.

Fools and their money are soon parted.

A foole & his money,

be soone at debate:

which after with sorow,

repents him to late.

The precise wording of the exp

ression comes just a little later, in Dr. John Bridges'

Defence of the Government of the Church of England

, 1587:

If they pay a penie or two pence more for the reddinesse of them..let them looke to that, a foole and his money is soone parted.

http://www.phrases.org.uk

Stock market at all time high, unemployment at all time low, currency very strong, investment flowing in from Japan, USA and other countries. What economic indicators are you using to make your prediction?

Edited February 4, 2013 by metisdead
: 30) Do not modify someone else's post in your quoted reply, either with font or color changes, added emoticons, or altered wording.

[diddums]

It would be nice if it all fals over.

[chiangmaikelly]

It would be nice if it all fals over.

Why?

[pomchop]

Good if you can afford to be in the program ...for the bank bashers...I am sure you have a well dug in your moo baan where it is more secured

Speaking from practical experience are we ?

Remember the compensation limits on bank accounts here in Thailand is but 1 million baht for Thai account holders and nil for foreign account holders.

1 million baht is but a trifling sum of money that wouldn't even buy a small town house in a terrace here.

More ways than one to have a secure financial future than feeding the bankers..

Where did you read that the deposit gurantee doesn't cover farangs? Is the insurance STILL at 50 million baht??

During a cabinet meeting dd. 26 June 2012, it was decided that the deposit guarantee should be kept at 50,000,000 baht per person per bank, as requested by the Finance Ministry. This decision was apparently guided by global economic uncertainty.

It is most interesting that this statement did not make headlines, and was only reported in a sidebar in the newspapers (source here, the Nation dd. 27 June)

[KRS1]

Poverty sucks

[chiangmaikelly]

Good if you can afford to be in the program ...for the bank bashers...I am sure you have a well dug in your moo baan where it is more secured

Speaking from practical experience are we ?

Remember the compensation limits on bank accounts here in Thailand is but 1 million baht for Thai account holders and nil for foreign account holders.

1 million baht is but a trifling sum of money that wouldn't even buy a small town house in a terrace here.

More ways than one to have a secure financial future than feeding the bankers..

The manager at my Bank of Bangkok told me I had 1 million coverage and I am a Farang. Do you have a source for you information that Farangs are not covered?

[LawrenceChee]

Poverty sucks

Agree ! So work hard and smart , plan well and retire in comfort ...nothing wrong with being comfortable and smart with your $$$$

[siampolee]

The manager at my Bank of Bangkok told me I had 1 million coverage and I am a Farang. Do you have a source for you information that Farangs are not covered?

Ask for the guarantee in writing and read it carefully small print as well. You may well not like what you see before your very eyes.

Remember ,

“Believe none of what you hear, and only half of what you see.”

Benjamin Franklin

Edited February 4, 2013 by siampolee

[chiangmaikelly]

The manager at my Bank of Bangkok told me I had 1 million coverage and I am a Farang. Do you have a source for you information that Farangs are not covered?

Ask for the guarantee in writing and read it carefully small print as well. You may well not like what you see before your very eyes.

Remember ,

“Believe none of what you hear, and only half of what you see.”

Benjamin Franklin

It is fine. Why would you say it was not? What is your source?

[siampolee]

http://en.wikipedia....urance#Thailand

Thailand

The complete deposit protecion system was introduced in Thailand by the establishment of the Deposit Protection Agency (DPA) on 11 August 2008, in accordance with the Deposit Protection Agency Act B.E. 2551. The objectives of the Agency as specified by law are providing protection to deposits in financial institutions system; administration of institutions subject to control under the Financial Institutions Businesses Act and liquidation of financial institutions whose licenses have been revoked. Deposit in Thailand is fully guaranteed until 10 August 2011. From 11 August 2011 until 10 August 2012, the coverage drops to 50 million baht per depositor per bank. Thereafter, coverage is limited to THB one million per depositor per bank

Note the use of the word insurance

Before your very eyes is the interpretation of the Deposit insurance scheme.

Note the use of the word '' Insurance'.' That term means that you may receive compensation.

However if the word ''Assurance,'' was used that interprets as you will receive compensation.

Legalistic language is indeed a maze for the average layman.

Put that argument before a judge and the banks or financial entity will win, the depositor loses..

Edited February 4, 2013 by siampolee

[paz]

I bet the Bank that siampoles comes here with a chip on the shoulder, but not a chip in the pocket...

While noitom spoke about what he knows better...

Yes it's quite horrible to be poor farangs in a land of rich Thais... from there the bitterness..

[siampolee]

Siampolee has been here for 22+ years and there are property and business holdings here and elsewhere too.No chips on the shoulder but blue chips abound.

Judge not that thou may be judged also Paz..

[brianP]

Yeah K-bank is offering 15% on fixed accounts, but it is only 1.5% in APY annual percentage yield.

They tier the interest and give ,5% 11 months and 15% 1 month and it is a deceptive practice.

Ask for written baht gain after taxes and other deductions and the APY!!!!!

[siampolee]

brianP post # 22

Yeah K-bank is offering 15% on fixed accounts, but it is only 1.5% in APY annual percentage yield.

They tier the interest and give ,5% 11 months and 15% 1 month and it is a deceptive practice.

Ask for written baht gain after taxes and other deductions and the APY!!!!!

Now we see clearly how wise it is to read the small print,

That which appears to be a wonderful deal is in fact nothing more than a gilded lily designed to influence the investor and divert them from the truth of the matter .Wow 15% .

Yes please I'll have some of that, here's my money, start my investment now.

1year later,

What has happened to the interest income I was promised, in your glossy brochure ? Sorry sir or madam, didn't you read the small print first or consult your financial adviser and do your sums ?

Thank you, next innocent fool please.

[55Jay]

Isnt this a direct contradiction to the other thread about lowering interest rates?

No, the other one was an "opinion" piece. This article is fact because of the source. LOL.

[belg]

the 50 million to 1 million lowering, who would not be afraid to lose everything? why is this in place? to steal people's life savings ???

they got our money in the first place but now they cannot guaranty your money / wealth / life savings when they make big bucks in loaning it tenfold to others and taking the profits ?

[chiangmaikelly]

Yeah K-bank is offering 15% on fixed accounts, but it is only 1.5% in APY annual percentage yield.

They tier the interest and give ,5% 11 months and 15% 1 month and it is a deceptive practice.

Ask for written baht gain after taxes and other deductions and the APY!!!!!

Quote K bank, "According to Mr. Pakorn Partanapat, KASIKORNBANK Executive Vice President, the product is intended to provide depositors a secure savings alternative with higher-than-normal returns while interest rates generally are remaining fairly constant. KBank’s ‘Wow! Step-up Fixed Deposit – 18 months’, pays step-up rates peaking at 15 percent p.a. Deposits will earn 1.85 percent p.a. the first through the fifth month, 2.65 percent months 6-9, 3.35 percent months 10-13, 4.15 percent months 14-17 and 15 percent p.a. the 18th month. Average interest for the 18-month term of deposit is 3.61 percent p.a."

Seems clear to me. Can't you guys read? It is not deceptive at all.

Edited February 4, 2013 by chiangmaikelly

[bkk_mike]

I'm sorry, but government backed insurance deposit at that level is simply too good to be true.

i.e. Iceland walked away from their banks' UK and Dutch depositors and the Icelandic deposit protection wasn't for 50,000,000 baht's worth per person.

If the shit completely hit the fan and Bangkok Bank and SCB went bust (like RBS and HBOS in the UK would have done without government backing), would you honestly expect them to guarantee 50m baht (1.6m dollars or £1m per person, per bank.) - The UK's deposit protection is, I think, a twentieth of that (£50,000), and in the US it's $250,000, and their governments have banks that are "too big to fail" because of it.

What makes anyone think that Thailand could afford the deposit protection at that level if the banks had a repeat of 1997?

[chiangmaikelly]

I'm sorry, but government backed insurance deposit at that level is simply too good to be true.

i.e. Iceland walked away from their banks' UK and Dutch depositors and the Icelandic deposit protection wasn't for 50,000,000 baht's worth per person.

If the shit completely hit the fan and Bangkok Bank and SCB went bust (like RBS and HBOS in the UK would have done without government backing), would you honestly expect them to guarantee 50m baht (1.6m dollars or £1m per person, per bank.) - The UK's deposit protection is, I think, a twentieth of that (£50,000), and in the US it's $250,000, and their governments have banks that are "too big to fail" because of it.

What makes anyone think that Thailand could afford the deposit protection at that level if the banks had a repeat of 1997?

THAILAND's International Reserves and Foreign Currency Liquidity

http://www.imf.org/e...ng/curtha.htm#I

Edited February 6, 2013 by chiangmaikelly

[diddums]

I'm sorry, but government backed insurance deposit at that level is simply too good to be true.

i.e. Iceland walked away from their banks' UK and Dutch depositors and the Icelandic deposit protection wasn't for 50,000,000 baht's worth per person.

If the shit completely hit the fan and Bangkok Bank and SCB went bust (like RBS and HBOS in the UK would have done without government backing), would you honestly expect them to guarantee 50m baht (1.6m dollars or £1m per person, per bank.) - The UK's deposit protection is, I think, a twentieth of that (£50,000), and in the US it's $250,000, and their governments have banks that are "too big to fail" because of it.

What makes anyone think that Thailand could afford the deposit protection at that level if the banks had a repeat of 1997?

THAILAND's International Reserves and Foreign Currency Liquidity

http://www.imf.org/e...ng/curtha.htm#I

Nothing like blind faith hey.

[chiangmaikelly]

I'm sorry, but government backed insurance deposit at that level is simply too good to be true.

i.e. Iceland walked away from their banks' UK and Dutch depositors and the Icelandic deposit protection wasn't for 50,000,000 baht's worth per person.

If the shit completely hit the fan and Bangkok Bank and SCB went bust (like RBS and HBOS in the UK would have done without government backing), would you honestly expect them to guarantee 50m baht (1.6m dollars or £1m per person, per bank.) - The UK's deposit protection is, I think, a twentieth of that (£50,000), and in the US it's $250,000, and their governments have banks that are "too big to fail" because of it.

What makes anyone think that Thailand could afford the deposit protection at that level if the banks had a repeat of 1997?

THAILAND's International Reserves and Foreign Currency Liquidity

http://www.imf.org/e...ng/curtha.htm#I

Nothing like blind faith hey.

You mean the IMF has blind faith?