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
customers view investment
decisions that are influenced by
external and internal factors.
• Demand of wealth management
services in India
• The results of the study will show which
factors are most essential when selecting
an investing or wealth management
service
• Professional wealth management is
making a significant difference in the
lives of investors
• Increase Spread Financial awareness
through right medium by wealth
managers
• Usage of analytics to make better
decision
• Diversification across sectors and
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
 Wealth management firms distribute products of the
manufacturers against some commission
 The Higher the commission, the more distributers will sell
 They are the one of the powerful sales channels of the
manufacturers.
 Buyers are emotionally connected to their wealth
 Stringent Government regulation
advisor
 Relationship with the Bank/ WM firm
 When the relationship manager moves from one
 Rise of FinTech will moderately impact
company to another, client moves with the RM.
Wealth management industry
 But in case, client is not satisfied with the provider, they
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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