Overview of the Indian Wealth Management Market

by , January 2, 2008

Abstract

Bangalore, India 2 January 2008

The Indian wealth management industry is at a new stage. Providers, products, channels, technology, regulation, and clients are coming together in the wealth management space to capitalize on this tremendous growth opportunity.

The wealth management industry in India is experiencing an evolutionary phase of development. With the liberalization of the Indian economy and subsequent growth and prosperity across sectors, the wealth management industry is poised to gain greater traction in an expanding market. In a new report, , Celent examines how the wealth management industry is enhancing its relevance in this dynamic marketplace.

According to the report, India is slated to become a US$1 trillion market (in assets under management) for wealth management providers by 2012, with a target market size of 42 million households.

The client segmentation schema promises growth across all the six categories:

  • Ultra-high net worth, or Ultra-HNW (in excess of US$30 million), will have a total population of 10,500 households by 2012.
  • Super high net worth (between US$10 and $30 million) will have a total population of 42,000 households by 2012.
  • High net worth (between US$1 million and $10 million) will have a total population of 320,000 by 2012.
  • Super affluent (between US$125,000 and $1 million) will have a total population of 350,000 households by 2012.
  • Mass affluent (between US$25,000 and $125,000) will have a total population of 1.8 million households by 2012.
  • Mass market (between US$5,000 and $25,000) will have a total population of 39 million households by 2012.

"This phenomenal market opportunity is resulting in interesting dynamics at the provider end, where there is consolidation by segment. At the product end, Celent foresees the launch of diverse products catering to different client segments and sophistication levels," says Ravi Nawal, analyst in Celent's banking practice and author of the report. "There is increasing momentum towards structure in this previously chaotic domain. We should expect some very India specific innovations in the near future."

This report examines the structural and contextual changes that are driving the growth of new product and provider classes, as well as highlighting future trends in the industry. The report also details client segments and explores the technology framework required at the provider end to effectively exploit this immense market opportunity.

The 36-page report contains 8 tables and 20 figures. A table of contents is available online.

Members of Celent's Retail Banking and Retail Securities & Investments research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Tel: +44 (0)782 448 3336

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Table of Contents

Bangalore, India 2 January 2008

Executive Summary 03
Introduction 06
Growth Drivers for Financial Services 07
Indian Wealth Management Industry 11
  Market Structure 11
  Market Segmentation 13
  Market Participants 18
  Product Classes 21
  Market Size 24
Technology 27
Future Trends 30
Challenges and Opportunities 34
Conclusions 36

 

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