Standard Chartered Private Bank has been making headlines across
Asia this year, so it does not come as too much of a surprise it
has also been making significant progress in India.
That it has upped its assets under management (AuM) in the
country from $100 million in 2007 to $1.5 billion today, placing it
among the fastest growing private banks in the country, is a
reflection of what many in the industry have seen it achieve across
other Asia-Pacific markets.
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But it is the way it has achieved this success in India,
arguably the industry’s most promising and dynamic market, that is
particularly notable. Soumya Rajan, head of StanChart private bank
in India, said as much as 50-60 percent of all new clients were
coming through referrals from its wholesale banking platform.
This strategy of referring business is what Peter Flavel, the
bank’s head, referred to as making the most of the bank’s ‘acres of
diamonds’ – clients already within its corporate and investment
bank that also required wealth management services.
It was the main rationale behind the formation of the private
bank in 2007, and the evidence suggests it is being executed with
considerable success. StanChart’s private banking AuM in India is
expected to reach $2 billion by the end of 2010.
Elsewhere, ING Vysya says 40 percent of its net new money is
coming through client referrals in its own commercial and
investment banking operations.
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By GlobalDataMorgan Stanley also recently formed an investment club for
billionaires in the country. The bank’s Private Investment Club
will cater to individuals with investable assets of more than $1
billion. The club will allow exclusive access to investment
opportunities being created in its investment bank.
It highlights how banks with scalable capital markets operations
in the region have an opportunity to become significant wealth
management players. It is estimated assets under management in
India will reach $1 trillion by 2012, and it currently has the
second largest number of ultra high net worth individuals in Asia.
Wealth managers in the country are beginning to warm to this
challenge with a variety of models, with advisory models also
proving particularly popular.
Religare Macquarie has been among the most ambitious. It set up
an entirely advisory-based platform earlier this year and plans to
generate $10 billion of assets under management by 2012, with 990
relationship managers.
