Wealth management marketing & behavioral
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Wealth management marketing & behavioral






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Wealth management marketing & behavioral Wealth management marketing & behavioral Presentation Transcript

  • Topics covered
    • Wealth creation cycle
    • Role of banks & private banking
    • Role of marketing in wealth management
    • Technology
    • Process of marketing & HNIs
    • Client segmentation
    • Profiling the prospects & approach
    • Execute, monitor,& review
    • Development of interpersonal negotiation time management, skill & assertiveness.
    • Qualities of relationship manager & CRM
    • Selling process & role-plays in prospecting, closing.
  • Wealth management market in India
    • Demographics
      • 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 offerings
    • Portfolio management services (PMS)
    • Mutual funds
    • Insurance products
    • Equity
    • Fixed income instruments
    • Mortgage lending
    • Real estate
    • Art funds
    • Derivatives and structured products
  • Select Players
    • Bank of America corporation
    • Barclays PLC
    • BNP Paribas Groups
    • Citibank
    • Credit Suisse Group
    • Deutsche Bank AG
    • HDFC bank limited
    • State Bank of India
    • HSBC Holding PLC
    • ICICI Bank limited
    • ING Group N.V.
    • JP Morgan Chase & Co
    • Merrill Lynch & Co. Inc.
    • SG Asset Management
    • Standard Charted PLC
  • Key Trends
    • Rapidly 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 limitations
    • Market 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.
    • Wealth tends to stay onshore/offshore
    • High requirement for privacy and security
    • Strong interest in equities, funds and alternative investments
    • Strong interest in aggressive/high yield investments
    • Keen on real time information via high tech tools
    • High cultural sensitivity to keep wealth low profiles
    • Strong international brand awareness
    • Preference to invest in large, secure blue chip stocks
    • Confidence in reputable foreign financial service institution
    • Increase focus on capital appreciation
    • Maximum possible tax planning
    • Cash preservation in foreign currency e.g. US dollar
    • Prefer to be serviced by relationship manager.
    • A customer – centric approach delivered by highly trained professionals
    • Dedicated wealth manager – cultural affinities
    • Face of the bank
    • One point contact
    • Personal guide to achieve financial goals
    • Penal of financial experts who ensures your money works harder
    • Lower end of the scale – “self directed” not to pay customized services
    • 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 Portfolio Construction Understanding Financial Goals Investment Plans Portfolio Maintenance Portfolio Review
  • 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 Services
    • Issued 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