CIMB Thai's retail strategy targets affluent customers

CIMB Thai Bank made it easier for wealthier customers to hold a CIMB Thai "Preferred" account.

To avail such customers now need to have assets-under-management worth Bt1 million only. The previous requirement was Bt3 million.

Adisorn Sermchaiwong, senior executive vice president of the bank's retail group, yesterday said the company had found that fund mobilisation from the mass market might not be effective enough because of the bank's relatively few branches and automated teller machines.

"As a small bank, we cannot compete with major banks by opening more branches or increasing the number of ATMs to access mass-market depositors. We have to rethink what we can do given that we have relatively few branches, and fund mobilisation from rich customers is our choice," he said.

CIMB Thai has about 12,000 Preferred customers with combined assets under management of Bt100 billion. The bank targets attracting new AUM of Bt60 billion this year, half of which will be deposits, thanks to the decision to slash the minimum requirement for opening a Preferred account.

"We want to encourage new affluent customers to touch our products and services, and the AUM tier reduction will help us easily expand the customer base," he said.

Adisorn said affluent customers were more interested in high-return products than in brands.

For more.