Tapping the Thai Wealth Market

http://www.chinaccm.com 2005-2-26 9:25

Title: Tapping the Thai Wealth Market
Publication Date: Feb. 2005
Format: PDF
Price: $2795

Overview

Introduction

This report looks at the size and composition of the wealth markets in Thailand, Malaysia, India and Indonesia, analyzing the opportunities that exist for regional and local players and providing the best strategies for entry. Competitive dynamics and customer tendencies are analysed, including an insight into the offshore nature of investors in these markets.

Scope

The macroeconomic and savings and investment data was collected directly from governmental sources such as the Reserve Bank of India
Insight into the Indian financial services market obtained through in-depth interviews with the main wealth managers and private bankers
Sizing and forecasting of mass affluent and high net worth individuals were generated from proprietary Global Wealth Model

Report Highlights

As an indication of this dominance, domestic banks held 99.3% of all deposits of individuals in the Thai market, which gives them a distinct advantage when it comes to wealth management.
The provision of specialist services in Thailand for affluent individuals seems to be the exception rather than the rule. Of the major domestic banks, only Thai Military Bank, Bangkok Bank and Krung Thai Bank have an affluent offering outside of their normal retail banking services.
Even mass affluent clients require relationship management and an elevated level of service and this can be done through dedicated branches of the kind seen in other countries.

Reasons to Purchase

Allows wealth managers to monitor threats and opportunities posed by their main competition
This report forecasts the market to 2008, allowing competitors to plan strategies on the basis of detailed market information
Helps competitors plan products and services by giving key information on their customers' financial services preferences.

CHAPTER 1 INTRODUCTION 8

What is this report about? 8
Who is the target reader? 9
How to use this report 9

CHAPTER 2 THAILAND 11

Introduction and macroeconomic background 11

Population and GDP 12
Thailand's population is diverse 12
The Thai economy has seen boom and bust in recent years 12
Inflation and interest rates 13
FDI 14

Retail savings & investments 15

Affluent individuals 17

Offshore tendency 17
Thailand's investors contribute to flows into Singapore and Hong Kong 17
Affluent individuals and their assets 17
Mass affluent 17
High net worth 18

Regulatory environment 20

Financial services 20
The Financial Sector Master Plan 20
Capital markets 21
The Capital Market Master Plan 21

Banking structure 23

Local players 23
Foreign entrants 24
Onshore services 24
There is a distinct lack of specialist domestic banking services 24
Opportunities in the mass affluent space 25
There is more competition in private client services 25
Offshore services 27
Attracting money out of Thailand 27
Bharat Overseas Bank offers the only NRI service in Thailand 27

Future outlook 29

Customer outlook 29
Mass affluent segment 30
High net worth segment 31
Wealth market outlook 32
Regulatory overhaul is a boon 32
Opportunities to be taken at the mass affluent level 32
Local players should make a move on HNWs 33
Bancassurance is key and developing 33

Data 34

CHAPTER 3 APPENDIX 39

Definitions 39

AAGR 39
CAGR 39
Gini index 39
Liquid assets 40
Liquid asset bands 40

Research methodology 40

The Global Wealth Model 41

The UK sub model 41
Asia-Pacific sub model 41
Forecasting methodology 42
Wealth numbers compared with others' numbers 42

Bespoke Wealth Market Sizing 43

Further reading 44

Asia-Pacific Wealth Reports 44
Asia-Pacific Insight Reports 44
Global Wealth Service: Competitor Tracking 44

Financial Services Consulting 45
Asia-Pacific contacts 45

List of Tables

Table 1: Wealth market coverage 8
Table 2: The local players have a large share of the Malaysian banking market, 2004 23
Table 3: Specialist offerings available in Thailand 28
Table 4: GDP and S&I growth over the 1998-2003 period 34
Table 5: Bank rate, adult population and inflation, 1998-2003 34
Table 6: Thai retail liquid assets, 1998-2003 34
Table 7: Components of GDP, 2003 35
Table 8: Number of Thai mass affluent individuals, 1998-2003 35
Table 9: Liquid assets of Thai mass affluent individuals, 1998-2003 36
Table 10: Number of Thai high net worth individuals, 1998-2003 36
Table 11: Liquid assets of Thai mass affluent individuals, 1998-2003 36
Table 12: Forecasted retail liquid assets, 2003-2008 37
Table 13: Forecasted number of Thai mass affluent individuals, 2003-2008 37
Table 14: Forecasted liquid assets of Thai mass affluent individuals, 2003-2008 37
Table 15: Forecasted number of Thai high net worth individuals, 2003-2008 38
Table 16: Forecasted liquid assets of Thai high net worth individuals, 2003-2008 38
Table 17: Wealth markets that have been modeled using the Global Wealth Model 43

List of Figures

Figure 1: Methodology diagram and report structure 10
Figure 2: Major components of Thai GDP, %, 2003 13
Figure 3: Thailand's interest rates have fallen in recent years in keeping with the global trend 14
Figure 4: Retail savings and investment assets in Thailand have grown faster than the economy over the last five years 15
Figure 5: Deposits were the slowest growing investment vehicle for Thai investors between 1998 and 2003 16
Figure 6: The liquid wealth of mass affluent individuals in Thailand grew at a rate of 6.8% CAGR over the 1998-2003 period 18
Figure 7: The number of Thai HNW individuals grew by 7.2% AAGR over the 1998-2003 period 19
Figure 8: HNW individuals will own almost half of total retail liquid wealth in 2008 29
Figure 9: The mass affluent population will grow at a rate of 9.8% over the 2003-2008 period 30
Figure 10: There will be 39,000 more high net worth individuals in Thailand in 2008 than in 2003 31