Kiatnakin Phatra Financial Group (KKP) plans to expand assets under management (AUM) among its "mass affluent" customers as this segment is becoming an increasingly significant proportion of its client base.
The firm's total AUM for mass affluent customers, defined as those with assets ranging from 2-50 million baht, is 150 billion baht.
KKP aims to increase this amount to 250 billion baht by 2028, targeting average annual growth of around 20%, said Kulnan Tsanthaiwo, chairwoman of the company's private business.
This growth is expected to be driven by Thailand's transition to a longevity society, where people have a higher likelihood of living to 90-100 years.
Most Thais have not adequately planned their personal finances to support longer life expectancy, she said.
KKP wants to expand the wealth of its mass affluent customers over the next three years through its KKP Edge advisory service.
The bank recently relaunched KKP Edge after 15 years of providing financial services.
The firm has offered comprehensive wealth management services for more than 20 years, with total AUM reaching 900 billion baht.
KKP has served mass affluent customers on the KKP Edge platform for around 15 years and is now focusing on this segment because of its strong growth potential, said Mrs Kulnan.
Beyond supporting clients' wealth growth, KKP Edge wants to help Thais achieve their financial goals in alignment with longer life expectancy. As Thais live longer, financial planning becomes critical, she said.
"Statistics show only 17.8% of individuals achieve their financial goals, while nearly half of clients discontinue financial planning before reaching their targets, particularly in the mass affluent segment, due to higher financial burdens," said Mrs Kulnan.
Wealthy individuals, defined as those with assets of more than 50 million baht, account for only 9% of the country's total population, yet they hold around 60% of the total wealth, she said.
In contrast, the mass segment represents 50% of the population but holds just 10% of total wealth. The mass affluent segment comprises 40% of the population and accounts for about 30% of total wealth, noted the firm.
Under KKP Edge, the bank assists customers in allocating investment portfolios across global asset classes. In addition to generating returns, the bank emphasises risk diversification amid increasing global uncertainties.
Mrs Kulnan said many mass affluent clients still rely heavily on savings. The bank wants to guide them in diversifying into more sophisticated investment assets to enhance returns and build long-term wealth.
KKP plans to continue educating clients on the importance of diversification across a broad range of asset classes.
