Bankers make a case for wealth mgmt norms

Bankers today unanimously agreed that absence of defined standards in wealth management has hampered the growth of the private banking industry.

Lack of information sharing, ambiguity in the definition of products and services and customer segmentation are some of the major hurdles that have impeded the growth of wealth management services industry so far.

Banks need to share data on the actual number of wealth management clients in order to reach a proper figure. Despite the fact that many foreign and private sector banks have been offering wealth management services, only 5 per cent of the actual potential in India has been tapped, said Arpit Agrawal, head - private banking, ICICI Bank.

Agrawal estimated the aggregate assets under management with private banking divisions of all banks taken together at Rs 12 trillion. He said the Indian market needs a comprehensive mix of strategies based on revenue generation and those driven by assets under management as the core issue is converting savers into investors.

Absence of a uniform figure of the actual number of mass affluent and high networth individuals (HNIs) has led to varied estimations by different banks. Banks, therefore, need to share data on their actual number of clients in order to reach a proper figure, was the refrain of most speakers at a seminar on wealth management.

On differentiating between mass affluent and HNI clients, Vikram Issac, head - wealth management, Standard Chartered Bank, said HNIs expect banks to manage their investible surplus, while the mass affluent clients look for wealth accumulation, preservation and protection.

Speaking on client acquisition strategies, Sharad Mohan, vice-president (marketing director), private banking, Citibank, said, "Unconventional channels like micro-marketing via children's programmes and family events help in bringing in mass affluent clients."