| 30 | VIEWPOINT: KOTAK MAHINDRA BANK Experts in Private Banking - Kotak Private By Ms Oisharya Das CEO – Kotak Private Banking, Kotak Mahindra Bank Ltd. With the rising number of billionaires in India, the Private Banking industry is at the cusp of the next growth phase How much of your Private Banking customer base is Indian vis a vis NRIs? About 10% of the customer base comprises NRIs. Please detail the benefits of Kotak Private Banking services. Kotak offers a comprehensive and holistic platform covering the entire gamut of financial services to UHNI and HNI clients. We offer access to exclusive investment options along with curated banking solutions for both personal and corporate needs. We also provide access to various solutions such as: • Both discretionary asset allocation and nondiscretionary Investment advisory across all asset classes • Distribution services and referral services with access to curated products across asset classes • Exclusive access to funds managed by boutique fund managers across asset classes • Succession planning, which is an in-house offering provided through a 100% subsidiary of the bank. Since it is a highly sensitive and confidential matter, we do not outsource this service • Social impact investing • End-to-end banking solutions • Curated savings account proposition and credit card offerings • Concierge services and unique experiences designed for Private Banking clients What makes Kotak Private Banking more attractive vis a vis your key competitors & what value-added services does Kotak Bank offer? With the Kotak Group’s nearly 20 years of experience in the wealthmanagement industry, we have seen different market cycles and have maintained our leadership position due to our in-depth understanding of our client’s requirements, asset classes and the risk associated with each. Our capabilities to evaluate asset classes go beyond just ratings and financial numbers, helping us stand out. Offering tailor-made solutions along with a plethora of When did Kotak launch its Private Banking in India? And how fast is it growing? Kotak launched its Private Banking practice in 2003. Today, we are 300 times the size we were in the first year. Kotak Private Banking is one of the few Indian private banks that offer bespoke solutions to clients and their businesses. It is managed by a dedicated team of product specialists who understand unique client needs and offer tailor-made solutions. Is Private Banking available to Indians and NRIs? Yes. We serve high-net-worth individuals (HNI) and ultraHNI (UHNI) comprising entrepreneurs, business families and professionals, residing in India and abroad. services for our UHNI and HNI clients is our forte. We offer the widest range of focused financial solutions pertaining to different segments. Our clientele includes more than half of India’s top 100 families (Source: Forbes India Rich List, 2021). Besides, Kotak Private Banking has also maintained its leadership position by ranking 1st in the Asian Private Banker’s India AUMleague table for the seventh consecutive year (2015 to 2021). Is it right to say that you are able to retain over 90% of your Private Banking customers? Over the years we have seen that one size doesn’t fit all, especially in the private banking business. In order to meet their needs and expectations, and enhance our offerings in a structured manner, we have segmented our clients - entrepreneurs, business families and professionals. We keep client-centricity at the core assisting clients with their personal andbusiness finances. Our clients enjoy a host of handpicked lifestyle benefits. Exclusive engagement initiatives are curated to cater to a diverse clientele. Ensuring client satisfaction and seamless experience has been our top priority. We have been able to retain over 90% of our clients. The attrition levels are minimal at less than 5%. Has Private Banking really taken off in India or do we have a long way to go before we catch up with the west? The RBI Deputy Governor recently stated that India is expected to match Germany’s GDP, becoming the fourthlargest economy by 2025-26. Further, by 2027, India is expected to surpass Japan and become the third-largest economy, according to a Morgan Stanley report. We anticipate the Indian Private Banking industry, which has been evolving over the years, is at the cusp of the next phase of growth, riding this wave of India’s robust economic growth going forward. A strong government-backed impetus for the financialisation of household savings in an attempt to redirect ormove away fromtraditional physical assets towards investment in financial assets is also gathering steam. The increased monetisation of infra, road and real estate assets by Indian institutions through newly instituted regulatory vehicles has also resulted in previously inaccessible asset avenues now available for investment. In addition to this, a surge in the number of new-age Indian tech billionaires as new wealth creators is another driver of growth for the private banking industry in India, enhancing the need for bespoke investment solutions to cater to the specific needs of such clientele. The regulator is also creating an ecosystem to help private banking and wealth management flourish by introducing the concept of Accredited Investors, which has been regularised in developed markets for a long time now. Such investors are expected to be sophisticated with financial market knowledge and hence may enjoy the benefit of certain relaxed provisions. Also, with the Registered Investment Advisors guidelines, the alignment with clients is a welcome step towards creating a viable and sustainable advisory proposition. Opportunities are immense and are growing. This is possibly the best time for the private banking space. The Indian economy is making a global mark and we are partners in its growth by curating customised solutions for wealth creators. • | 31 |
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