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 WB.

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 70,000 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

Open product architecture approach adopted by wealth managers

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

Key limitationsMarket 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 (HNI’s) (rise of wealthy class).

Wealth management service has increasingly become attractive to financial institutions.

FI’s 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 FI’s 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.1. Wealth tends to stay onshore/offshore 2. High requirement for privacy and security3. Strong interest in equities, funds and alternative

investments4. Strong interest in aggressive/high yield

investments5. Keen on real time information via high tech tools

6. High cultural sensitivity to keep wealth low profiles

7. Strong international brand awareness8. Preference to invest in large, secure blue

chip stocks9. Confidence in reputable foreign financial

service institution10. Increase focus on capital appreciation11. Maximum possible tax planning12. Cash preservation in foreign currency e.g.

US dollar

13. Prefer to be serviced by relationship manager. A customer – centric approach delivered by

highly trained professionals Dedicated wealth manager – cultural affinities

Face of the bankOne point contactPersonal guide to achieve financial goalsPenal of financial experts who ensures your money works harder

Lower end of the scale – “self directed” not to pay customized services

Portfolio Construction

Understanding Financial

Goals

Investment Plans

PortfolioMaintenance

PortfolioReview

•Asset Allocation

•Cash flow Planning

•Rebalance existing portfolio

•Execution of debt, equity and other investments

•Tactical rebalancing

•Maintain asset allocation

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

•Risk profile

•Investment objectives

•Existing portfolio

Disciplined

Portfolio

Building

approach

Wealth Management Products and Services Sacred Assets – Bank fixed deposits Money market investments no risk to capital and very low risk to income Serious assets Fixed income plans of Mutual funds low risk to capital and medium risk to income Aggressive 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 ServicesIssued in six currencies - travel card/traveller’s cheques. Encashable 14 million visa outlets, ATM’s across the world

Complimentary air accident insurance cover, compressive travel insurance cover

Foreign currency/bank notes