Pavan Kumar Danda
The Shift towards Wealth Management in Banking in India
-- A Study on Selected Private sector commercial banks
The emergence of the “private banking” & “wealth management” segments in banking, which took seed in the late 90s, has since attained huge proportions and holds a lot of promise for banks and financial institutions today. A progression from the aggressive retail banking focus of most large banks across the world, wealth management is a reflection of the emerging trend of an altogether new set of clients, a subset of “individual” or “retail” clients, but with the potential to amass significantly higher levels of wealth. Naturally, such clientele require a higher level of personalization, both in terms of relationship management as well as product offering. To the banks, it means a big opportunity in terms of quantum of assets managed as well as ongoing fee income potential.
Wealth management services are provided by banks, professional trust companies, and brokerages. The “high perceived value” of wealth management has more attraction than the “low cost transaction” for the retail market. Wealth management means taking care of the needs of clients, their families and their businesses as part of a long-term, consultative relationship. It’s best conceptualized as a platform where a number of different sets of services and products are provided. This brings unique challenges for the service provider and opens up immense opportunities for banks to offer solutions which can cater to the entire life cycle events of wealth management offerings. All in all, this is just the beginning of the new opportunity for the private commercial banks in India.
OBJECTIVES OF THE STUDY:
“The shift towards wealth management in banking in India --A Study on selected private sector commercial banks in India” is taken up with the following specific objectives:
1. To find out how far the private sector banks sensed the opportunity in wealth management in India.
2. To know different banks strategies in shifting towards the wealth management.
3. To analyze the wealth management practices in different banks.
4. To find out the best way of capitalizing on wealth management in banking which is most appropriate for the Indian customer and market.
