The wealth management sector in Thailand is experiencing growth and transformation. Technology is enabling wealth and asset management companies to enhance customer service across a broad spectrum, spanning financial institutions, financial advisors, agents, and ultimately, end consumers. For individual investors, technology is making it easier than ever to get started, providing both more choice and more control.
In the Asia Pacific region, a significant portion of personal financial assets are held in cash and deposits, signaling untapped opportunities. Thailand is no exception, with many interesting wealth tech platforms emerging to cater to the needs of local clients.
This article summarises the panel discussion titled “The Future of Wealth Tech in Thailand: Personalisation, Accessibility and Innovation,” presented by the Digital Technology Group (DTG) of the British Chamber of Commerce Thailand.
The discussion featured the following industry experts:
- Ashwani Ahuja, Managing Director of the Investment Division at Pi Securities
- Kris Supavatanakul; Strategy Director at Finomena
- Mike Rourke, Chief Product Officer at Arkhon; and Chair of BritCham, Singapore’s Fintech Committee
- Bob Gallagher, CEO of Appsynth.
For future DTG events, please refer to the BCCT calendar.
What is Wealth Tech
In simple terms, wealth tech refers to the application of technology in wealth management and financial planning. The intersection of wealth management and technology introduces new platforms and tools that offer alternatives to traditional wealth management methods. Wealth tech aims to enhance service efficiency, accessibility and customisation in the wealth management sector.
Wealth tech has become increasingly popular over the past few years as wealth management has adapted to major changes, including increasing regulatory responsibilities and compliance requirements, shifting customer expectations and stronger competition from startups. These factors continue to bring both new challenges and opportunities to the investment and asset management business model.
The Transformation of Traditional Thai Banks
Thai banks and corporations have quickly adapted to change, particularly in recent years. Leveraging their long-established reputation and large customer base, banks have embedded insurance and investment options directly into digital platforms. This quick transition enabled customers to manage their portfolios conveniently, reinforcing the bank’s role as a trusted financial partner. That said, banking governance makes it challenging to work with wealth tech, for example having strict limitations of the types of assets that can be offered.
Transition of Traditional Brokerage Companies to Digital
Traditional brokerage firms have shifted to digital platforms by strategically reducing reliance on physical locations, which were previously the primary touchpoints for clients. Instead, they have invested in digital touchpoints, particularly mobile applications. This transition not only addresses changing client demands but also enables traditional brokerage firms to expand their reach and improve service efficiency for the new generation of investors.
Ashwani Ahuja, Managing Director of the Investment Division at Pi Securities, highlights their transition. Pi Securities (formerly Country Group Securities) has shifted its focus from traditional brokerage to its mobile app, which now serves as a primary touchpoint. This transition, compared to seven years ago when the company relied heavily on Investment Consultants (ICs), offers a more sustainable approach that could generate additional revenue.
Wealth Tech with a Human Touch: Technology, AI & Financial Advisors
Traditional wealth management has historically relied on personal interactions, with investors seeking advice and financial planning assistance from investment consultants. While digital technologies and fintech innovations reshape this space, financial advisors will continue to play a vital role. This is partly due to the lack of financial literacy among potential investors and the evolving role of AI, which, despite its ability to analyse data sets and identify trends, has not yet gained complete trust from society.
Mike Rourke, Chief Product Officer at Arkhon, notes,
“For AI to be useful, you have to trust it and then take action. I don’t think as a society we are there yet, which creates the biggest challenge for adoption. If you told your investors that all your recommendations were coming from AI, you’d struggle to get them to put their money into products.”
This point underscores the fact that financial advisors will play an important role alongside wealth tech.
Crypto as an Investment Class
Cryptocurrencies are an emerging asset class, however, there are concerns regarding market volatility, regulatory clarity and the importance of investor financial literacy. While cryptocurrencies may introduce the new generation to investing, caution is advised due to high risk.
Unlike other regulated asset classes offered by traditional wealth management companies and wealth tech platforms, cryptocurrencies lack a safety net for investors.
While other asset classes provide access to qualified financial advisors, in the crypto space, investors must rely on their own education. Typically what happens is that emotion takes over, highlighting the importance of understanding each product and its underlying tokenomics.
To make informed investment decisions, people must educate themselves and assess their risk appetite. Understanding the inherent risks is crucial, as investing in cryptocurrencies can, in the worst case scenario, result in a zero-sum outcome.
In Summary
The future of wealth tech is promising. The convergence of technology and traditional finance will continue to transform the wealth management industry, making it more accessible and user-friendly, potentially serving a broader range of clients. While challenges such as regulatory uncertainty, data security and technical knowledge exist, these can be overcome through better education and increased investments in technology and infrastructure. Companies that combine fintech innovations with traditional finance are poised to thrive in this space.
