SCB Asset Management Company, the largest mutual fund company in Thailand, wants to offer new funds using AI technology.

SCB Asset will utilize cutting-edge tools such as artificial intelligence, data analytics and programmed trading to identify and offer new equity funds. These funds will invest in overseas equities and generate higher fees.

CEO Narongsak Plodmechai leads SCB Asset, which oversees about 1.5 trillion baht ($ 50 billion) of assets. The fund is seeking to retain existing clients as well as attract new customers.

Technology as a defense

“Before being disrupted, we have to create our superstar funds using advanced technology,” Narongsak said in a Bloomberg interview. “We are building robot trading and data analytic systems that will take us to new landscapes.”

SCB Asset is also safeguarding from size. Research shows that the growth of Thai mutual funds plateaus after reaching a size of 5 trillion baht. New innovative products will keep the growth fires burning.

Narongsak is developing his own AI model internally. SCB Asset traders will use it to trade equities in the Southeast Asian markets initially. It will later expand globally. This model will crunch information such as economic data, corporate earnings, news and regulations to deliver trading opportunities.

New international equity funds, using AI, could attract customers willing to pay higher fees. Already SCB Asset has restructured itself so that lower fees funds constitute 60% of assets, down from 85% in 2017.

New, innovative plans

Narongsak plans to float hedge funds once regulators allowed the entities in Thailand. He also plans to embark on short-term equity trading strategies that will boost funds’ performance.

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