Growth of Wealth Management Services in India | Services Marketing Case Studies

Details

Case Code : CLSM043
Publication date : 2005
Subject : Services Marketing
Industry : Banking and financial services
Length : 04 Pages
Price : Rs. 100

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Key words:

Liberalization, Banking Sector, Indian Wealth Management & Private Banking Survey, World Wealth Report 2003, IBM, Merrill Lynch, Cap Gemini, NCAER, Retail Segment, Semi-Affluent Segment, Affluent Segment, HNI's, Wealth Management Services Market, HSBC, HDFC, ICICI, UTI, Ask Raymond, DSP Merill Lynch, Fee Structures, Customer Service Level, Corporate Banks, Capital Market Players

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The caselet describes the market potential for wealth management services in India. It examines the reasons behind the growth of wealth management services in India. The caselet also provides an overview of services offerings made by Indian financial institutions in wealth management services segment.

Issues:

  » Wealth management services market in India.
  » Segmentation of financial services market in India.
  » Design of service offerings in wealth management services segment.

Introduction

With the liberalization of the banking sector in India, many banks are on the constant look-out for new opportunities. One of the areas where different banks are vying with each other to gain a strong position is in the wealth management services market.

According to a recent study by IBM, called Indian Wealth Management & Private Banking Survey 2003-04, the population of individuals of high net worth (HNI) has been growing at a rate of 40% per annum.

Merrill Lynch and Cap Gemini's (E&Y) World Wealth Report 2003 predicts that by the end of 2003, India will have 61,000 HNI's...

Questions for Discussion:

1. What factors are responsible for the increased prominence of wealth management services in India?

2. Financial institutions have divided wealth management services market into four segments based on income levels. Do you think that such segmentation helps in understanding the customer needs and targeting the right segment? If not, on what other basis can the market be segmented?