Private banks and wealth management companies are increasingly rolling services catering to the High Networth Individuals (HNIs) with IndusInd Bank joining the bandwagon in latest offering to capture greater market share.
The bank has launched a new program for the 'the discerning UHNWIs’ financial journey', announced on August 1, aimed at 'diverse needs of the HNWI segment' addresses estate and legacy planning, trade and forex services, personalised insurance solutions, aside of exclusive lifestyle privileges.
On July 31, Angel One Wealth said it is ramping up investment in technological infrastructure by infusing Rs 250 crore, and is in the process of creating an 'omnichannel wealth-tech platform'. Dinesh Thakkar, CMD, Angel One had earlier said, "We have successfully attracted a significant number of younger clients from Tier 2, 3 and beyond cities", adding that the affluent and emerging HNIs are an 'underserved segment'.
In the long term, Angel One Wealth said it has plans to offer wealth management services to retail investors as well.
360 ONE WAM has cited data to suggest that the addressable market of high and ultra-high networth individuals is a $1 trillion market which is poised to almost double in the next five years, growing at 13-14 percent every year. This, coupled with factors like urbanisation, rising household income, and a trend of premiumization of consumption will help ramp up growth in wealth management services. 360 ONE added that its HNI segment, categorised between Rs 5-25 crore is witnessing 'remarkable growth' in demand for service.
Bloomberg had quoted 360 ONE's co-founder Karan Bhagat stating that second and third generation owners of family businesses looking to exit businesses to pursue other ambitions are also creating big opportunities for wealth management players to tap. "The big revolution in Tier 2, Tier 3 cities will happen in the Rs 5-25 crore range,” Bhagat added.
The latest Hurun richlist has reported that India has the third largest numbers of billionaires in the world, a reflection of the relentless stock market rally that has seen a wide participation from across categories.
To add to this, a vibrant startup culture has added to the wealth of a large number of young senior executives, founders and investors. The 2023 Hurun list saw 84 startup founders with a total wealth of Rs 4.2 lakh crore, at an average age of 41 years.
A Knight Frank wealth report projects the number of individuals with over Rs 250 crore worth of assets is poised to rise by 50% by 2028.
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