The Thai bank has introduced innovative strategies and exclusive services aimed at promoting economic stability and societal development
The private banking sector has undergone significant changes in recent years, driven by global economic uncertainties, evolving customer expectations and the rising importance of sustainable investments.
High-net-worth individuals (HNWIs) are increasingly seeking personalised wealth management solutions that ensure the growth and preservation of their assets across generations. In 2023, the private banking market was valued at $477.3bn, with an expected growth rate of 10% annually from 2023 to 2032, according to the Global Market Insights consultancy. Despite challenges such as geopolitical tensions, inflation and market volatility, the sector continues to offer substantial opportunities for growth and innovation.
Thailand’s Kasikornbank has been at the forefront of addressing these needs with innovative strategies and exclusive services aimed at promoting economic stability and societal development.
Achievements
In 2023, the bank made significant strides with its ‘Perfect Wealth, Perfect Future’ initiative, aimed at ensuring the sustainable management and growth of wealth for HNWIs. This programme was developed in response to client concerns about wealth continuity and the need for sophisticated wealth management solutions that align with global trends and market movements.
The initiative revolves around four key pillars: risk-based allocation, alternative investments, sustainability and family wealth planning services. The pillars were designed to address various aspects of wealth management, ensuring a balanced and holistic approach to customer needs.
Impact and results
The risk-based allocation technique has been a cornerstone of Kasikornbank’s strategy. By systematically adjusting investment portfolios based on asset risk levels rather than expected returns, this approach has provided stable returns even in volatile markets. In addition, a partnership with Swiss bank Lombard Odier has been crucial in enhancing Kasikornbank’s wealth management offerings, particularly through the development and launch of investment strategies such as the K-ALLROAD series.
This collaboration has allowed KBank Private Banking to offer its clients access to Lombard Odier’s global expertise, particularly in risk-based asset allocation and sustainability-focused investments.
The partnership with the Swiss bank has also led to the introduction of funds that provide stable returns across various market conditions, reflecting Kasikornbank’s commitment to navigating economic volatility while maintaining long-term growth and stability for high-net-worth clients.
Alternative investments have also played a crucial role in enhancing returns. The introduction of funds such as the United Private Equity Fund 1 (UPREQ1-UI) and the China Private Equity Fund has allowed clients to benefit from assets that are less affected by market volatility, providing a stable income stream.
Sustainability has been another focal point for Kasikornbank, with investments in funds such as K Planetary Transition (K-PLANET) and MFC Renewable Energy Fund (MRENEW) gaining traction. Moreover, the successful hosting of the ‘Rethink Sustainability: A Call to Action for Thailand’ event highlighted the bank’s commitment to environmental and social governance, drawing significant attention and participation from global and Thai leaders.
Family wealth planning services have been expanded to include the Family Office and Family Reconciliation Service, addressing common concerns around family wealth management and succession planning. These services have been well-received, making Kasikornbank the first local financial institution in Thailand to offer such comprehensive solutions.
Conclusion
Kasikornbank’s achievements in 2023 demonstrate its commitment to innovative and sustainable wealth management solutions.
The ‘Perfect Wealth, Perfect Future’ initiative has successfully addressed the diverse needs of HNWIs, ensuring wealth preservation and growth through strategic investments and services.
Looking forward, the bank remains dedicated to continuous improvement and innovation, with plans to further integrate technology into its services and expand its offerings to meet evolving client needs.
This forward-thinking approach has optimally positioned Kasikornbank to navigate future challenges and continue delivering exceptional value to its customers.