Lu International, a Singapore-based subsidiary of leading Chinese retail fintech Lufax, is expanding its reach in the region via a strategic partnership with Kasikornbank.
The FinVest digital investment platform aims to cater to the growing market of retail investors in Thailand by providing access to a full spectrum of onshore and offshore investment products with low minimum investment amounts and management fees, according to an announcement on Tuesday.
The partnership was previously announced in August. The platform currently offers investors access to more than 600 funds from 15 asset management companies in Thailand, with a minimum of 1,000 baht ($35).
Established in 1945, Kasikornbank is the fourth-largest commercial bank in Thailand, with 17.3 million customers. The bank also works closely with Geneva-based private bank Lombard Odier, which manages global investment funds on behalf of its private clients. Lombard Odier also acts as an exclusive offshore custodian for Kasikornbank clients, using Singapore as a booking center.
Thailand is one of the fastest-growing markets in Southeast Asia and continues to see rapid wealth growth and economic development,» Greg Gibb, CEO of Lufax Holding, said in the announcement.
Thailand’s total outstanding capital market value stands at around 44 trillion baht ($1.46 billion), of which 4.8 trillion baht, or around 10 percent, is invested in mutual funds, Kasikornbank noted.
Of late, the younger generation has shown increasing interest in mutual funds, preferring to conduct transactions via digital channels and seeking products related to Thai and foreign equity instruments. Moreover, open-architecture investment is growing every year, Patchara Samalapa, Kasikornbank CEO, said.