Key Trends in the Indian Wealth Management Market

December 9, 2010
Industry Trends
Asia-Pacific

Abstract

The organized wealth management sector in India is growing, and there is a major opportunity for providers, which has led to the evolution of business models.

The organized wealth management sector has seen tremendous growth in the past two years, reaching 60% market share (compared to 40% in 2007). This is due to a three-way push: increasing presence of organized providers, income and profitability pressures resulting in consolidation, and talent migration.

In a new report, Key Trends in the Indian Wealth Management Market, Celent examines emerging product, provider, client, and regulatory trends impacting the wealth management industry in the country.

“The sheer size of the wealth management market in India and the desire of financial institutions to corner a large market share have resulted in fascinating trends in the sector,” says Ravi Nawal, Senior Analyst with Celent’s Indian Financial Services Group and author of the report. “The significant growth of the industry is impacting providers, products, and clients and their interactions with each other in a number of ways.”

This report examines sector-related changes, the size and growth of various client segments, shifts in product preferences, specialization of provider classes and the emergence of new provider classes, and changing customer behaviour.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Growth of the Organized Sector

8

Market Opportunity

10

Provider Specialization

14

The Rise of Financial Supermarkets

16

Brokers Spruce Up to Become Wealth Managers

18

Rise of New Provider Classes

21

Product Portfolio Shifts

25

Conclusions

27

Leveraging Celent’s Expertise

28

Related Celent Research

29

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