Bualuang Securities and its strategy for creating an S-Curve.
"The Thai stock market may not easily return to a bull market like in the past due to several structural challenges, but Bualuang Securities still sees growth opportunities by taking clients to invest overseas."
Chaiyaporn Nompitakcharoen Appointed to the position Managing Director, Securities Trading Business, Bualuang Securities. Ready to hold the same position. Acting Head of Product Development Effective August 16, 2568. Previously held the position of Managing Director, Securities Trading Division, responsible for marketing.
Chaiporn has worked with Bualuang Securities for over 23 years. Currently 58 years old, he plays a key role in the continuous development of the company's securities business. He began his career as a fundamental analyst before transitioning to Head of Sales, recognizing the changes in the business world and the declining commission fees in the brokerage industry.
Mission to build The new S-Curve for organizations.
"I shifted from data analysis to overseeing sales, with the goal of developing our personnel, especially investment advisors, to be ready for the challenges ahead."
Chaiporn explained his current role, stating that he is responsible for product development, a crucial area for creating a new S-curve for the organization. He believes that good products will lead to good returns, amidst pressure from competitive commission fees and declining trading volume in the Thai stock market. Bualuang Securities has set a growth direction focused on sustainability, not rapid growth, with the core of this strategy being:
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- Diversify income sources. Without relying solely on income from brokerage fees in the Thai stock market.
- Developing human resources to keep pace with the world. Investment advisors are continuously being improved and developed.
- Implement technology to streamline work processes. In addition to saving costs, it also allows us to meet customer needs more precisely, leading to maximum satisfaction.
- Stability and transparency Being a subsidiary of Bangkok Bank Public Company Limited, which holds over 99.7% of the shares, Bualuang Securities has a strong equity base of over 9,000 billion baht and can build trust with its clients regarding its financial stability.
Opening the door to the world of foreign investment.
For product innovations aimed at creating a new S-Curve and addressing the needs of customers seeking new investment options beyond the sluggish Thai stock market, Bualuang Securities has developed a diverse range of products with a greater focus on connecting to international markets, including:
1. Securities representing rights in foreign securities (Depositary Receipt (DR) The number of accounts investing through Bualuang Securities' international products has grown rapidly, from a few thousand accounts to 12,000 accounts.
2. Private Funds Bualuang Securities recognized a gap in the personal fund market, which typically requires a high initial investment of up to US$1 million (approximately 30 million baht). Therefore, they developed a system to overcome this limitation, offering general investors access to professional portfolio management services with a starting investment of just 500,000 baht.
Chaiyaporn stated that Bualuang Securities' private fund service utilizes technological infrastructure such as trading programs, liquidity management capabilities, and know-how from its securities analysis team. A key advantage is the use of technology to adjust investment weightings, ensuring all clients receive simultaneous portfolio adjustments without manual processing. This prevents clients from being "later" in receiving service. Clients can track their investment portfolios and view returns at any time through the Wealth CONNEX application.
3. Shifting roles to become an investment advisor. To enhance services and help investors make better decisions, Bualuang Securities has shifted its role from a trading service provider (broker) to an investment advisor through its "Top Fund" tool, utilizing the BLS Scoring system to rate over a thousand mutual funds in the market.
Furthermore, when clients want to invest in a particular asset (such as Japanese stocks or US bonds), the team will select the top 3 best funds to recommend, without being limited to funds from the same provider. This strategy helps narrow down the client's options, making decision-making easier and ensuring that they are considering funds that have been vetted based on key factors.
"Modern stock brokers are no longer just order takers, but financial advisors who use technology and data as tools to create value for their clients."
Top Fund- Private Fund
Meets the needs of small businesses.
Chaiyaporn stated that Bualuang Securities' long-term goals are to diversify its revenue from international products and services and to create new investment products linked to global assets in order to broaden the investment horizons for Thai clients.
"In the past, many clients said they couldn't choose the right fund because there were over 2,000 funds in the market. That's why we've been developing the Top Fund system for over 17 years to help allocate portfolios that are suitable for each individual."
Furthermore, Bualuang Securities aims to bridge the gap between large and small investors by designing a private fund service with a minimum initial investment of 500,000 baht. This service is managed under a licensed private fund management system and stands out for its real-time portfolio management using technology. The system can adjust investment weights for all clients simultaneously, unlike manual systems which are slow and inconsistent. Clients can also monitor their portfolio performance at any time via the Wealth CONNEX app, without waiting for annual reports. This represents technological equality, making high-quality wealth management services accessible to everyone.
"The application of technology in work processes aims to reduce steps, save costs, and most importantly, provide personalized service and maximize customer satisfaction. A clear example is the use of automation in adjusting the portfolios of private funds, ensuring that all clients receive portfolio adjustments simultaneously and equally."
When Thai stocks recover, a margin account of 1.2 billion baht is ready.
Chaiyaporn discussed a significant strategic shift at the securities company to cope with the sluggish Thai stock market. The approach involves transforming from a brokerage to a full-service investment advisor, leveraging technology and databases to drive revenue growth in both international markets and the wealth management business, which has significant growth potential.
“Even though the overall business structure in the Thai capital market is slowing down, Bualuang Securities has been able to maintain its core revenue base through risk management and proactive preparedness, such as securities financing services and block trading. Currently, Bualuang Securities has a margin limit of 12,000 billion baht, but clients have only actually used 3,000 billion baht. This means there is over 9,000 billion baht in unused purchasing power. If the market returns to a bull market, this purchasing power will become a significant driving force.”
Regarding Block Trade transactions, Chaiyaporn stated that the value in the Thai stock market used to be as high as 60,000 billion baht, but has now decreased to around 10,000-13,000 billion baht. This reflects investors' cautious use of leverage. However, once confidence returns, Block Trade will be a quick recovery transaction, and Bualuang Securities is among the leaders in this industry.
"The Thai stock market is not as attractive as it used to be. We can no longer wait for the market to recover on its own. Taking clients to invest abroad is the sustainable solution. Bualuang Securities has a clear stance that it will not take clients to trade foreign stocks without supporting research. Every investment must be supported by data so that clients can make decisions based on genuine understanding."
Chaiyaporn concluded by acknowledging that while the Thai stock market may not easily return to its past bull run due to several structural challenges, Bualuang Securities still sees opportunities for growth. He believes that fostering learning among employees and clients, expanding into international investment, and continuously developing innovative products will be key mechanisms enabling Bualuang Securities to maintain its leadership and achieve stable and sustainable growth in the ever-changing financial landscape.
Follow and read other columns in the Bank Finance Journal, December 2568, Issue 524 in digital format: https://goo.gl/U6OnIi
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