*

Topics coveredWealth creation cycleRole of banks & private bankingRole of marketing in wealth managementTechnologyProcess of marketing & HNIsClient segmentationProfiling the prospects & approachExecute, monitor,& reviewDevelopment of interpersonal negotiation time management, skill & assertiveness.Qualities of relationship manager & CRMSelling process & role-plays in prospecting, closing.

Wealth management market in IndiaDemographics

Sustained GDP growth has created wealth in many sectors like gems & jewellery, retailing, financial services and BPO.

GDP growth is concentrated in Maharashtra, UP and GUJARAT

Mumbai alone accounts for 50% of the deposits held by foreign banks.

High net worth individuals (HNIs) are defined as those with the financial assets of at least 1 million dollar excluding residential property.

Estimated 402000 HNI are there in India compared to 8.3 million worldwide.

Number of HNIs in India is increasing by 15 to 20% yearly.

Major products offeringsPortfolio management services (PMS)Mutual fundsInsurance productsEquity Fixed income instrumentsMortgage lendingReal estateArt fundsDerivatives and structured products

Select PlayersBank of America corporationBarclays PLCBNP Paribas GroupsCitibank Credit Suisse GroupDeutsche Bank AGHDFC bank limitedState Bank of India

HSBC Holding PLCICICI Bank limitedING Group N.V.JP Morgan Chase & CoMerrill Lynch & Co. Inc.SG Asset ManagementStandard Charted PLC

*

Key TrendsRapidly growing market

Clients becoming increasingly sophisticated

Wealth managers are being looked upon as trusted advisors rather than money managers for their clients.

Key limitations

Market is in its nascent stage

In the country also, 85% of the financial assets are still in the form of bank deposits.

Low usage of technology tools by the wealth managers

Shortage of skilled and experienced wealth managers.

*

Opportunity Knocks Unlocking the wealth management potential

Explosion in the number of high net worth individuals (HNIs) (rise of wealthy class).

Wealth management service has increasingly become attractive to financial institutions.

FIs in nearly every corner offer an array of products

Growing economies like China, India, emerging economies responding to:

(a) Rising stock prices. (b) An influx of foreign investments (c) Increase in salary and spending power (d) Stock market trading (e) Entrepreneurship (f) Technology and services (g) company Executives (h) First generation new class of affluent

Wealth management is prestigious service

Despite expanding wealthy class FIs are relatively inexperience

Process of exploring different models and approaches best to suit target customer and business environment

Premium services and sophisticated product has become core strategy

FI's are looking for edge in competition in market place

Compete aggressively on asset based fees and advisory and differentiate themselves in their go to market strategy to increase profitability and shareholders value

Providing - Financial planning

Portfolio allocation Service and advice tailored to the risk tolerances of wealthy customer

New Pledge for bankers, investment brokers and insurance companies

Wealth Management Preferences Developed Economies Australia , Hong Kong, Japan, Singapore, South Korea, Europe and USA.Emerging Economics China, India, Indonesia, Malaysia, Brazil and Russia.

Wealth tends to stay onshore/offshore High requirement for privacy and securityStrong interest in equities, funds and alternative investmentsStrong interest in aggressive/high yield investmentsKeen on real time information via high tech tools

High cultural sensitivity to keep wealth low profilesStrong international brand awarenessPreference to invest in large, secure blue chip stocksConfidence in reputable foreign financial service institutionIncrease focus on capital appreciationMaximum possible tax planningCash preservation in foreign currency e.g. US dollar

Prefer to be serviced by relationship manager.A customer centric approach delivered by highly trained professionalsDedicated wealth manager cultural affinities

Face of the bankOne point contactPersonal guide to achieve financial goalsPenal of financial experts who ensures your money works harderLower end of the scale self directed not to pay customized services

Asset AllocationCash flow PlanningRebalance existing portfolio

Execution of debt, equity and other investments

Tactical rebalancingMaintain asset allocation

Review investment objectives. Portfolio progress, asset allocation and portfolio strategy

Risk profileInvestment objectivesExisting portfolio

DisciplinedPortfolioBuilding approach

*

Wealth Management Products and ServicesSacred Assets

Bank fixed deposits Money market investments no risk to capital and very low risk to incomeSerious assets Fixed income plans of Mutual funds low risk to capital and medium risk to incomeAggressive assets Direct equity Equity related mutual funds high risk to capital and income

Alternative Assets

Private Equity funds Real estate funds Gold and Gold ETF Varying levels of risk return and liquidity

Risk protection

covering life insurance, non life insurance needs, ULIP, Endowment and term Plans, Health insurance, Travel insurance, Motor insurance.

Foreign Exchange Services

Issued in six currencies - travel card/travellers cheques. Encashable 14 million visa outlets, ATMs across the world

Complimentary air accident insurance cover, compressive travel insurance cover

Foreign currency/bank notes

*

*

**