Wealth management marketing & behavioral


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Wealth management marketing & behavioral

  1. 2. Topics covered <ul><li>Wealth creation cycle </li></ul><ul><li>Role of banks & private banking </li></ul><ul><li>Role of marketing in wealth management </li></ul><ul><li>Technology </li></ul><ul><li>Process of marketing & HNIs </li></ul><ul><li>Client segmentation </li></ul><ul><li>Profiling the prospects & approach </li></ul><ul><li>Execute, monitor,& review </li></ul><ul><li>Development of interpersonal negotiation time management, skill & assertiveness. </li></ul><ul><li>Qualities of relationship manager & CRM </li></ul><ul><li>Selling process & role-plays in prospecting, closing. </li></ul>
  2. 3. Wealth management market in India <ul><li>Demographics </li></ul><ul><ul><li>Sustained GDP growth has created wealth in many sectors like gems & jewellery, retailing, financial services and BPO. </li></ul></ul><ul><ul><li>GDP growth is concentrated in Maharashtra, UP and WB. </li></ul></ul><ul><ul><li>Mumbai alone accounts for 50% of the deposits held by foreign banks. </li></ul></ul>
  3. 5. <ul><li>High net worth individuals (HNIs) are defined as those with the financial assets of at least 1 million dollar excluding residential property. </li></ul><ul><li>Estimated 70,000 HNI are there in India compared to 8.3 million worldwide. </li></ul><ul><li>Number of HNIs in India is increasing by 15 to 20% yearly. </li></ul>
  4. 6. Major products offerings <ul><li>Portfolio management services (PMS) </li></ul><ul><li>Mutual funds </li></ul><ul><li>Insurance products </li></ul><ul><li>Equity </li></ul><ul><li>Fixed income instruments </li></ul><ul><li>Mortgage lending </li></ul><ul><li>Real estate </li></ul><ul><li>Art funds </li></ul><ul><li>Derivatives and structured products </li></ul>
  5. 7. Select Players <ul><li>Bank of America corporation </li></ul><ul><li>Barclays PLC </li></ul><ul><li>BNP Paribas Groups </li></ul><ul><li>Citibank </li></ul><ul><li>Credit Suisse Group </li></ul><ul><li>Deutsche Bank AG </li></ul><ul><li>HDFC bank limited </li></ul><ul><li>State Bank of India </li></ul><ul><li>HSBC Holding PLC </li></ul><ul><li>ICICI Bank limited </li></ul><ul><li>ING Group N.V. </li></ul><ul><li>JP Morgan Chase & Co </li></ul><ul><li>Merrill Lynch & Co. Inc. </li></ul><ul><li>SG Asset Management </li></ul><ul><li>Standard Charted PLC </li></ul>
  6. 8. Key Trends <ul><li>Rapidly growing market </li></ul><ul><li>Clients becoming increasingly sophisticated </li></ul><ul><li>Open product architecture approach adopted by wealth managers </li></ul><ul><li>Wealth managers are being looked upon as “trusted advisors” rather than “money managers” for their clients. </li></ul>
  7. 9. Key limitations <ul><li>Market is in its nascent stage </li></ul><ul><li>In the country also, 85% of the financial assets are still in the form of bank deposits. </li></ul><ul><li>Low usage of technology tools by the wealth managers </li></ul><ul><li>Shortage of skilled and experienced wealth managers. </li></ul>
  8. 10. Opportunity Knocks Unlocking the wealth management potential <ul><li>Explosion in the number of high net worth individuals (HNI’s) (rise of wealthy class). </li></ul><ul><li>Wealth management service has increasingly become attractive to financial institutions. </li></ul><ul><li>FI’s in nearly every corner offer an array of products </li></ul>
  9. 11. <ul><li>Growing economies like China, India, emerging economies responding to: </li></ul><ul><li>(a) Rising stock prices. </li></ul><ul><li>(b) An influx of foreign investments </li></ul><ul><li>(c) Increase in salary and spending power </li></ul><ul><li>(d) Stock market trading </li></ul><ul><li>(e) Entrepreneurship </li></ul><ul><li>(f) Technology and services </li></ul><ul><li>(g) company Executives </li></ul><ul><li>(h) First generation new class of affluent </li></ul>
  10. 12. <ul><li>Wealth management is prestigious service </li></ul><ul><li>Despite expanding wealthy class FI’s are relatively inexperience </li></ul><ul><li>Process of exploring different models and approaches best to suit target customer and business environment </li></ul><ul><li>Premium services and sophisticated product has become core strategy </li></ul>
  11. 13. <ul><li>FI's are looking for edge in competition in market place </li></ul><ul><li>Compete aggressively on asset based fees and advisory and differentiate themselves in their “go to market” strategy to increase profitability and shareholders value </li></ul><ul><li>Providing - Financial planning </li></ul><ul><li>Portfolio allocation </li></ul><ul><li>Service and advice tailored to the risk tolerances of wealthy customer </li></ul><ul><li>New Pledge for bankers, investment brokers and insurance companies </li></ul>
  12. 14. Wealth Management Preferences <ul><li>Developed Economies – Australia , Hong Kong, Japan, Singapore, South Korea, Europe and USA. </li></ul><ul><li>Emerging Economics – China, India, Indonesia, Malaysia, Brazil and Russia. </li></ul><ul><li>Wealth tends to stay onshore/offshore </li></ul><ul><li>High requirement for privacy and security </li></ul><ul><li>Strong interest in equities, funds and alternative investments </li></ul><ul><li>Strong interest in aggressive/high yield investments </li></ul><ul><li>Keen on real time information via high tech tools </li></ul>
  13. 15. <ul><li>High cultural sensitivity to keep wealth low profiles </li></ul><ul><li>Strong international brand awareness </li></ul><ul><li>Preference to invest in large, secure blue chip stocks </li></ul><ul><li>Confidence in reputable foreign financial service institution </li></ul><ul><li>Increase focus on capital appreciation </li></ul><ul><li>Maximum possible tax planning </li></ul><ul><li>Cash preservation in foreign currency e.g. US dollar </li></ul>
  14. 16. <ul><li>Prefer to be serviced by relationship manager. </li></ul><ul><li>A customer – centric approach delivered by highly trained professionals </li></ul><ul><li>Dedicated wealth manager – cultural affinities </li></ul><ul><li>Face of the bank </li></ul><ul><li>One point contact </li></ul><ul><li>Personal guide to achieve financial goals </li></ul><ul><li>Penal of financial experts who ensures your money works harder </li></ul><ul><li>Lower end of the scale – “self directed” not to pay customized services </li></ul>
  15. 17. <ul><li>Asset Allocation </li></ul><ul><li>Cash flow Planning </li></ul><ul><li>Rebalance existing portfolio </li></ul><ul><li>Execution of debt, equity and other investments </li></ul><ul><li>Tactical rebalancing </li></ul><ul><li>Maintain asset allocation </li></ul><ul><li>Review investment objectives. Portfolio progress, asset allocation and portfolio strategy </li></ul><ul><li>Risk profile </li></ul><ul><li>Investment objectives </li></ul><ul><li>Existing portfolio </li></ul>Disciplined Portfolio Building approach Portfolio Construction Understanding Financial Goals Investment Plans Portfolio Maintenance Portfolio Review
  16. 18. Wealth Management Products and Services <ul><li>Sacred Assets – </li></ul><ul><li>Bank fixed deposits </li></ul><ul><li>Money market investments </li></ul><ul><li>no risk to capital and very low risk to income </li></ul><ul><li>Serious assets </li></ul><ul><li>Fixed income plans of </li></ul><ul><li>Mutual funds </li></ul><ul><li>low risk to capital and medium risk to income </li></ul><ul><li>Aggressive assets </li></ul><ul><li>Direct equity </li></ul><ul><li>Equity related mutual funds </li></ul><ul><li>high risk to capital and income </li></ul>
  17. 19. <ul><li>Alternative Assets </li></ul><ul><li>Private Equity funds </li></ul><ul><li>Real estate funds </li></ul><ul><li>Gold and Gold ETF </li></ul><ul><li>Varying levels of risk return and liquidity </li></ul><ul><li>Risk protection – </li></ul><ul><li>covering life insurance, non life insurance needs, ULIP, Endowment and term Plans, Health insurance, Travel insurance, Motor insurance. </li></ul>
  18. 20. <ul><li>Foreign Exchange Services </li></ul><ul><li>Issued in six currencies - travel card/traveller’s cheques. Encashable 14 million visa outlets, ATM’s across the world </li></ul><ul><li>Complimentary air accident insurance cover, compressive travel insurance cover </li></ul><ul><li>Foreign currency/bank notes </li></ul>