Wealth
Management
Deepa S Kalavikatte
Jaya Dixit
Nidhi Dangi
Study Overview
Why was study What is result that Recommendation or
performed? study will provide Suggestion from
Study
• The study will reveal how • The results of the study will show which • Increase Spread Financial awareness
customers view investment factors are most essential when selecting through right medium by wealth
decisions that are influenced by an investing or wealth management managers
external and internal factors. service • Usage of analytics to make better
• Demand of wealth management • Professional wealth management is decision
services in India making a significant difference in the • Diversification across sectors and
lives of investors investment classes
WEALTH MANAGEMENT IN INDIA
• The Indian Wealth Management market is on a sustained path of growth, given India’s long-term economic prospects, positive demographics,
rising income levels and current low penetration
• India is currently ranked among the Top 10 nations in terms of total private wealth held as per Capgemini’s World Wealth report and currently
has the fourth-highest number of HNWIs in the Asia-Pacific region after Japan, China and Australia .
• The Industry’s AUM has grown from ₹ 15.80 Crores as on September 30, 2016 to ₹36.74 Crores as on September 30, 2021, more than 2 fold
increase in a span of 5 years
• As of now this industry is fragmented with brokers, sub-brokers, financial advisers, insurance and tax consultants. Financial institutions, private
banking divisions of popular lenders, and public sector banks provide wealth management services in India
• Key products in Wealth Management in india
• Asset Management
• Financial Planning (specific short term and long term goals)
• Tax Planning
• Estate Planning
OPPORTUNITIES AND TRENDS
Unique solutions for HNIs Internet penetration
Emergence of FinTechs Increasing Complexities of Financial Markets
Lack of Pricing Transparency and Technological Advancements
Competitive Fees
KEY MARKET SEGMENTS
SEGMENTS
Business Model End User
Human Advisory Retail
Provider High Net Worth
Robo Advisory
Individuals (HNIs)
Traditional Wealth
Hybrid Advisory FinTech Advisors
Managers
Banks Others
INDUSTRY
ATTRACTIVENESS
Bargaining power of suppliers Low Bargaining power of Buyers Medium Threat of New Entrant Medium
Suppliers are the product manufacturers Buyers are emotionally connected to their wealth
Stringent Government regulation
Wealth management firms distribute products of the advisor
Relationship with the Bank/ WM firm
manufacturers against some commission When the relationship manager moves from one
Rise of FinTech will moderately impact
The Higher the commission, the more distributers will sell company to another, client moves with the RM.
Wealth management industry
They are the one of the powerful sales channels of the But in case, client is not satisfied with the provider, they
manufacturers. will switch on to other brand.
Threat of substitute Low Industry Rivalry Medium
• International and domestic firms.
There are barely any substitutes of wealth advisory.
• Brand matters for investments
One of the substitute could be the treasury department of the companies.
• But, Relationship management is the key for the business
But, they would need support from WM firms to sign up the products.
• There are many players coming up because of technological advancements.
Customers can Invest in FDs but will earn low return on their
• Awareness is increasing due to easy access to information.
investments.
Porter’s Five Forces
KEY DRIVERS FOR CUSTOMERS
Reporting and Transparency Timeliness and Clarity in Attentiveness
Communication
It’s all about being quick and right in today’s world. Wealth managers
The way firms can drive better reporting and The client is looking for wealth managers to provide must be available on-demand and proactively share strategies with
transparency is to onboard customers onto a data-driven insights quickly and briskly clients. Any data or information that is requested by the client must
digital wealth management platform with a customer- be quickly turned around
facing app or portal
Long Term Approach Strong Understanding Reducing Friction
Wealth Management Firms that can identify the right Nowadays, clients look at goal-based investing and Whether it’s getting a customer on board or the speed
offerings for the investor’s portfolio and back it up unless this resonates with the investment manager, it’s and accuracy of data, the client expects customer
with strong data are the ones that retain clients in the difficult for the relationship to click. experience to be top-notch.
long run.
The ‘Rewired Holistic, Goals Demographic
Customer’ Based Advice Trends Regulatory Burdens
Science V/s Human Diversification of
Based Asset Classes and Challenging Macro New Competitive
Strategies Investors Patterns
Analytics and Big Catching the
Data Retirement Wave
DISRUPTIVE
TRENDS
Associations between Bank & Wealth Management
Bonds & Shares
Contacts Contacts
Investors associated with Wealth
Corporates Banks
Management firm
Capital
CRITICAL ANALYSIS
Firms develop more descriptive, Robo-Advisors and predictive analytics that will
create more complete and insightful client profiles.
This enhanced insight will allow firms to assess existing or potential new clients’
propensity to purchase various products and services, their lifetime value, investment
style, and risk tolerance.
Because of increase in technology, lot of FinTech companies are coming up. Thus
customer awareness of investment products is also increasing and there is a fear of job
loss for the sales employees.
For, HNI customers, Human interaction is essential. Thus to be successful it is important
to build a good relationship with customers.
India wealth management market is expected to grow at a CAGR of around 11% during the forecast
period.
THANKS!
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