DBS Reignites Wealth Management Expansion in Thailand
DBS has reinitiated its wealth management growth efforts in Thailand following a halt caused by the pandemic, concurrently scaling back its brokerage operations through a reduction in its workforce.
According to Sim Lim, the chairman of DBS Vickers, during a press briefing in Bangkok on February 14, the bank is reinforcing its commitment to Thailand by planning to recruit additional seasoned bankers to cater to the country's increasing affluent population.
The bank is introducing its 'wealth continuum' strategy in Thailand, focusing on a hybrid digital-physical advisory model to assist clients with investment decisions and transactions. This strategy aims to offer a comprehensive wealth management solution that integrates both local and international services, a plan that was previously interrupted by the COVID-19 outbreak in 2020.
Back in September 2019, DBS announced a collaboration between DBS Private Bank and DBS Vickers Securities (Thailand) aiming to double its wealth management assets from SGD 4 billion to SGD 8 billion by 2023. This initiative intended to grant Thai wealth clients easy access to an extensive wealth management service. The bank also aimed to double the number of wealth management bankers in Thailand by 2023.
These plans are now progressing, including the appointment of skilled bankers to strengthen the bank's services for ultra-high net worth individuals. DBS Private Bank has been actively recruiting for its Thailand operations, both for domestic and international roles. Notably, Edwin Tan from Credit Suisse will be joining as the market head for Thailand, Vietnam, and the Philippines. The bank has significantly built its team by recruiting from Credit Suisse’s Thai unit, which UBS chose to close post-merger. This includes hiring two senior investment consultants for private fund mandates and two private bankers the previous month.
DBS anticipates that its wealth management assets in Thailand will see a significant increase, potentially tripling in the next one to two years, with DBS Securities having managed around THB 100 billion in assets by the end of 2023.
On the brokerage side, DBS Vickers (Thailand) will downsize its workforce to approximately 160 from a high of 280, mainly affecting the brokerage department. The division is adopting a digital-first approach to more efficiently serve Thai retail customers, leveraging AI for financial advisory, and offering personalized investment recommendations based on customer risk profiles.
Furthermore, DBS plans to introduce its hybrid human-robot advisor, DBS digiPortfolio, along with various unit trusts and dollar-cost averaging options by the second half of 2024, enhancing its digital investment services.
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