Finansia aims to dominate online with Korean partner
Finansia Syrus Securities Plc aims to increase its market share to 6% this year and become the top online brokerage firm by forming a partnership with a leading South Korean player to develop a new trading application.
Chief executive Chuangchai Nawong said the new trading app, which is being developed jointly with Kiwoom Securities and is scheduled for an official launch next month, will be the key factor driving the company’s online brokerage trading to rise to first place.
“The app will serve the new generation of investors who are familiar with smartphones and technology,” said Mr Chuangchai.
Last year the securities industry reported the online segment contributed 68% of total trading value by individual investors. Of those transactions, 60% were conducted on smartphones and the rest on personal computers.
Mr Chuangchai said the company has a 7.4% market share for online trading and has ranked second for three consecutive years. If offline trading is included, the company’s market share stands at 5%.
“We aim to increase our market share to 6% by year-end, driven by online trading. The number of online trading accounts is expected to increase to 150,000 from 50,000 at present,” he said.
Mr Chuangchai said the company has also prepared backup operations, including a one-stop service where investors are able to contact the call centre by dialling a single number, doubling its call centre staff to 40 employees and launching a non-face-toface application for new customers.
The company has a 500-strong marketing staff nationwide, down from a peak of 700-800 the past three years, as it embarked on an aggressive online securities trading business expansion plan.
“The marketing staff are still necessary outside of Greater Bangkok,” said Mr Chuangchai.
The company also plans to incorporate the Korean securities business model by training online financial consultants and recruiting graduates with honours in finance or related fields, training them for three months so they can obtain securities licences and familiarise themselves with the firm’s financial products.
Jitra Amornthum, senior executive vicepresident, said the company projects the Stock Exchange of Thailand index to reach 1,900 points this year, under the assumption that listed firms’ earnings growth hits 13% and the price-to-earnings ratio stands at 17 times.
Interesting sectors for equity investment are banking, IT, retail, property, and businesses related to the government’s infrastructure development projects, said Ms Jitra.
Finansia Syrus Securities expects Thailand’s GDP to expand 4.2-4.5% this year, propelled by net export growth and tourism spending, while the policy interest rate is forecast to remain at 1.5% because of low inflationary pressure.