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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
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