Tisco eyes 30% gain in fee in­come

Bangkok Post - - BUSINESS - SOMRUEDI BANCHONGDUANG

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.

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