Although financial products distributors in China, India, Singapore and South Korea lead the Asian financial products distribution landscape, financial products distributors in Malaysia, Taiwan and Thailand are catching up fast.
According to a new report by Haymarket Intelligence, an affiliate of AsianInvestor, Southeast Asian financial institutions dominate the second tier of distributors, making this a potential source of growth in the future.
The report, titled Retail Financial Products Distribution Market in Asia, looks at mass retail as well as private banking, brokerage and insurance distribution in Asia ex-Japan. (For information about the report, please e-mail Richard Santoro or call him on +852 3175 1980.)
In addition to its ranking of the top 25 retail financial products distributors in Asia, the report also defines the “Next 10”.
Half of the Next 10 are from Southeast Asia, led by Malaysia’s Public Bank, but comprising mainly of Thai distributors: Bangkok Bank, Siam Commercial Bank, Krungsri Group (affiliated with Bank of Ayudhya) and Krungthai Bank.
Taiwan also figures prominently in the Next 10, with Mega Financial Holding, First Financial Holding and Taiwan Cooperative Bank in the mix.
India’s HDFC Bank and South Korea’s KB Financial Group complete the Next 10.
Mega Financial Holding, which is the third largest distributor of retail financial products in Taiwan, is high on efficiency with revenue per branch of $5.9 million, which is higher than many banks appearing in the Next 10 list.
Public Bank Malaysia has net revenue per branch of $5.8 billion. It is one of the leading retail financial products distributors in Malaysia and employs around 17,300 people.
KB Financial Group of South Korea has an extensive network of 1,498 branches, while HDFC, the second largest private bank in India boasts a network of 1,986 branches and employs 55,752 people.
The non-interest income portion of Bangkok Bank and Siam Commercial Bank is on the higher side with non-interest income of $1.07 billion and $1.03 billion for 2010, respectively. Krungsri Group and Krungthai Bank have an average standing across all ranking parameters.
The ranking was compiled by weighing five metrics, including non-interest income, net revenues per branch, the number of branches, the number of employees and the product portfolio (including deposits, insurance, mutual funds, brokerage and private banking).