Digistilisation Impact on Investment in Thailand
The technology that investment advisors are embracing to attract millennial to their offerings includes digital platforms, apps, Artificial Intelligence, Robotics, and Blockchain technology.
Digital Platforms and Apps
- Thai millennials are very tech-savvy and have embraced fintech solutions. In fact, 35% of Thai millennials use digital technology to send money, which is about double the percentage of millennials in either Singapore or Malaysia. Hence, fund managers understand that by building digital solutions that make investing simple and intuitive, they are likely to attract new millennial investors in Thai land.
- Hence, banking and investment entities are working hard to produce third-generation apps and digital platforms that make financial transactions and investments that will attract millennials. Fintech companies such as TrueMoney and J Fintech are already leading with such offerings in Thailand.
- Kiatnakin Phatra Financial Group, one of Thailand's leading investment banks with extensive institutional and high-net-worth investor coverage, recently invested in iSTOX, a digital platform designed for issuance and trading of digitized securities.
Artificial Intelligence (AI)
- According to Smith Banomyong, chief executive of SCB Asset Management (SCBAM), SCBAM is investing in AI capable of analyzing stocks in a portfolio and selecting those likely to have a high yield and capable of matching and sending orders.
- When SCBAM launched its AI Fund in 2017, the company attracted investment worth over 1 billion baht, which shows that the offering is popular among investors in Thailand.
- The Thai Stock Exchange is building a platform that will enable asset tokenization and exchange using distributed ledger technology.
- According to the Thailand SEC Secretary-General Ruenvadee Suwanmongkol, "the Master Blueprint contains the overview of how the Thai capital market can apply DLT to various processes, from issuance and offering for sale in the primary and secondary markets to post-offering processes related to corporate bonds, SME shares, mutual funds, and derivatives."
- The Thai Bond Market Association is also moving to adopt Blockchain technology. The goal is to use Blockchain technology to facilitate bond registration and to tokenize bonds for faster and easier settlement in bond trading.
- Investment advisors in Thailand are increasingly adopting robotics. Mutual fund businesses have embraced robotics as a way to both lure in tech-savvy investors and improve services and processes.
- Finnomena is an example of a fund management company that was founded on the idea of using robo-advisers to make investing easier for Thais, even those with little knowledge about investing. This is vital given that only about half of millennials in Thailand invest and lack of knowledge is one of the key factors limiting the participation of Thais in the investment market.
- BBL Asset Management, AVA Advisory, and Kiatnakin Phatra Securities are examples of investment advisors that are making giant strides in incorporating robotics in their investment advisory offerings in Thailand.