Many may wonder why so many wealthy individuals do not invest on their own, despite possessing knowledge, experience, and sufficient funds to hire experts in almost every field. The reason is that as wealth grows, the complexity of managing money increases accordingly.
For those with assets in the tens or hundreds of millions, or more, the challenge is no longer about generating more money like most of us. Instead, it lies in preserving, transferring, and managing vast wealth spread across various forms.
This explains why wealthy people worldwide willingly pay substantial fees for services known as Private Banking.
This is also why this client segment becomes a "treasure trove" that financial institutions globally strive to secure, as although the number of clients is small, they hold significant assets and demand diverse financial services ranging from investment and tax planning to estate transfer and family wealth management.
In recent years, many banks in Thailand have aggressively expanded their Private Banking businesses by recruiting investment specialists, developing products tailored for affluent clients, and connecting networks of legal, tax, and overseas investment advisors.
The question is, what makes Private Banking so special that both clients and banks increasingly prioritize this business?
Generally, Private Banking does not just advise wealthy clients on which stocks or funds to buy; it acts as a steward overseeing the client’s entire asset portfolio. When assets reach tens or hundreds of millions of baht, funds typically are not held only in bank accounts but distributed across businesses, real estate, Thai and foreign stocks, and various other asset types.
Private Bankers function like coordinators who bring in experts from different fields—accountants, lawyers, tax advisors—both domestic and international—to assist in managing assets.
In some cases, they help structure asset ownership, plan estate transfers, or handle tax matters related to foreign investments.
Due to the specialized knowledge required, this business in Thailand is regulated by the Securities and Exchange Commission (SEC), and practitioners must hold licenses for investment advisory and financial planning as stipulated.
Most banks do not hire fresh graduates directly as Private Bankers; instead, they select individuals with prior experience in wealth management, investment banking, or financial advisory roles.
Interestingly, amid volatile financial markets, many clients in this segment seek more than analytical reports or app data; they want someone who can explain situations, evaluate options, and confirm that their plans remain on track. For those with vast assets, comfort comes not just from investment advice but from having someone continuously overseeing their entire wealth portfolio.
Beyond investment, tax planning is a crucial concern for Private Banking clients. As wealth grows, taxes become a major cost in wealth management, especially when income derives from multiple sources, businesses operate in various sectors, or investments span domestic and international markets.
Private Bankers’ duties extend beyond maximizing returns; they must assess whether current asset ownership structures are efficient and identify tax liabilities that can be legally optimized.
Sometimes this involves coordinating with accountants and tax consultants to structure holdings via holding companies, plan estate transfers, or manage cross-border investments considering tax regulations from multiple jurisdictions.
For the average person, a 1-2% increase in investment return may be important, but for those with hundreds of millions in assets, appropriate tax planning can preserve wealth more effectively than chasing short-term returns.
Currently, each Private Banking business in Thailand tries to differentiate itself to attract affluent clients. For example,
Kasikornbank (KBank) and Siam Commercial Bank (SCB) are major players in the market, setting assets under management (AUM) thresholds for Private Banking clients at about 50 million baht and above, supported by global partners for investment and wealth planning services.
SCB additionally offers a joint venture with Julius Baer, a Swiss private wealth management bank, raising the client threshold to over 100 million baht to access global investment products and solutions directly.
Bangkok Bank (BBL) focuses on close client care through its Private Bank Center and specialist teams for High Net Worth clients, also with asset requirements starting around 50 million baht.
ttb Bank segments its services into levels, with ttb reserve Private starting at approximately 30 million baht in assets, while Ultra Private clients must have over 100 million baht, reflecting expanding competition for younger wealthy clients.
United Overseas Bank (UOB) is notable for offering Private Banking services from about 10 million baht upwards, connecting clients to investment networks and analyst teams in Singapore, a key regional wealth management hub.
HSBC provides Onshore Private Banking services starting at 70 million baht, linking accounts and investment portfolios globally through its Singapore regional office.
Meanwhile, Kiatnakin Phatra Financial Group offers PRIORITY Service for large or high net worth individuals with combined deposits and investments (Average Asset) of at least 10 million baht, distinguished by portfolio structuring analysis.
Thus, although the term Private Banking is common, client entry criteria and services vary significantly across banks, ranging from 10 million to over 100 million baht, with deeper service levels correlating to asset size and financial planning complexity.
Ultimately, for most people, the biggest challenge is how to make money when funds are limited. But once wealth reaches a certain level, the challenge shifts from "how to get rich" to "how to ensure the wealth built over a lifetime is not lost along the way." This may be the true reason why many billionaires choose to have a Private Banker by their side.
Sources: PwC Thailand, Kasikornbank, Siam Commercial Bank, Thai Financial Planners Association, Asian Private Banker
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