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Julius Baer's Thailand JV Launches, Targets Wealth Management

The move is part of a trend of wealth management firms and banks targeting the country's HNW sector.
Julius Baer is
forming a joint venture with Siam Commercial
Bank to develop operations in Thailand, highlighting
continued private banking expansion by firms in the Southeast
Asian nation.
SCB-Julius Baer Securities Co, as the JV is called, today
announced that it has received licences to operate. The joint
venture will " focus on bringing best-in-class global wealth
management capabilities to clients", the organisation said.
The banks said that more than 50 people have been hired to run
the JV.
Jiralawan Tangitvet joins as chief executive to lead SCB Julius
Baer. Prior to this, she was managing director of Kasikorn
Securities.
The move follows Liechtenstein-based LGT's move in early March to
create a Thai business, called LGT Securities (Thailand) Limited.
Some firms have been in the country for some time, such as Credit
Suisse, which recently named a new
Thailand CEO. Thailand’s overall wealth market is estimated
to be around $300 billion, with a rapidly growing population of
high net worth individuals of approximately 30,000, according to
the BCG Global Wealth Report 2017.
The move also shows Swiss banks among those tying the knot with
Asian partners. As reported last year, the Swiss Bankers
Association said the shrinking number of Swiss banks should
consider teaming up with other firms to expand in Asia with its
rising number of millionaires.
“We endeavour to serve the sophisticated Thailand-based clients
with our global wealth management platform for substantial growth
and positive returns," Dr Arak Sutivong, President, The Siam
Commercial Bank, said.
“In addition, over 50 relationship managers, investment
specialists and support functions staff have been hired. They
have been receiving comprehensive training and development,
enabling them to serve clients’ long-term wealth management
requirements,” Dr Sutivong said.
“Our training programme is tailored to equip relationship
managers with key skills to meet the evolving financial needs of
clients in Thailand,” Christian Cappelli, market head Emerging
Asia, Julius Baer, said.
The idea of Asian tie-ups with local players has been in evidence
for some time. In August 2018 Lombard Odier (Singapore) Ltd, part
of the Geneva-based Swiss bank, worked with Mizuho Securities
(Singapore) to offer investment solutions and wealth management
expertise in Asia. Lombard Odier announced strategic partnerships
with UnionBank in the Philippines in August 2016, Kasikornbank in
Thailand in December 2014 and most recently, Bank Mandiri in
Indonesia in April this year. Julius Baer and Nomura recently
announced a strategic partnership, with the Japanese financial
services group taking a 40 per cent shareholding in Julius Baer
Wealth Management Ltd. This enables the Swiss group to open up
JBWM’s bespoke discretionary mandate services to wealthy Nomura
clients in Japan. .