Tisco eyes 30% gain in fee income
Tisco Bank aims for double-digit growth in fee-based income next year based on Standard Chartered Bank Thai’s (SCBT) retail banking asset transfers.
With a 20% growth in assets under management (AUM) following the retail banking asset transfer, Tisco wants 30% growth in fee-based income next year, up from 10% estimated 10% in 2017, said Picha Ratanatam, head of wealth management business. Tisco’s open-architecture model should also facilitate the bank’s business expansion, he said.
Tisco’s total AUM for individual wealth customers amounts to 145 billion baht, of which 25 billion was transferred from SCBT in October.
Late last year, Tisco and its sister firm All-Ways Co announced the acquisition of SCBT’s retail banking business for 5.5 billion baht. Under the deal, Tisco Bank acquired SCBT’s credit cards, personal loans, business loans, wealth management unit, mortgage loans, bancassurance and retail deposits.
Some 7 billion baht in personal loans, 5 billion in business loans, 25 billion in mortgages, six branches of SCBT, 300,000 retail customers and another 100,000 affluent clients will be transferred to Tisco Bank, while 4 billion baht worth of credit-card business will be shifted to Tisco.
Under its open-architecture platform covering mutual funds and insurance products, Tisco collaborates with 10 asset management companies and six insurers (both life and non-life). The bank also offers firstin-class financial products, said Mr Picha.
Tisco has 250 wealth management officers, of which 50 transferred from SCBT, and who have Certified Financial Planner licences.
The bank wants such officers to be available at its 60 branches nationwide by 2018 to grow the business.
Although Tisco requires a minimum AUM of 1 million baht for a wealth client, customers with AUM of 5 million are the bank’s main focus.