Axis Bank, the fifth-largest private sector bank in India, has launched Burgundy Private, a wealth management offering aimed at the growing numbers of the ultra-rich.
The new product is designed for those who can deliver a ‘relationship value’ of more than INR0.05bn (around $700,000), as against the earlier INR0.003bn (around $42,000) under the five-year-old-old product.
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By GlobalDataWhat will Axis Bank offer the ultra-rich?
The platform will cater to high net worth and ultra-high net worth individuals and offer services such as portfolio management, tax advisory, estate planning and real estate advisory.
The bank management referred to independent research that expects a twofold increase in the number of the ultra-high net worth individuals to 263,000 by 2025 from 153,000, as well as a higher growth in their wealth to $2.6tn from the present $1.07tn over the next six years, for the launching.
Axis Bank managing director and chief executive Amitabh Chaudhry said: “With the Burgundy Private wealth platform, we plan to tap this huge opportunity and gap in the market with one of its kind, niche, customised solutions, specifically meant for people who have finite time but infinite needs.”
He said that the team has been working for more than eight months for launching the platform.
Chaudhry said that ‘time-poor’ rich, while ensuring business, are often ignorant about personal wealth, creating the need for an overall advisory solution. The bank said that it will have 50 bankers across 15 cities to service this clientele.
The Axis Bank official said that it is a ‘myth’ that advisory is dominated by non-banking players.
Axis Bank executive director Pralay Mondal said that the bank has built a team of 70, mostly recruited from rivals, and their target is to add wealthy clients and not just increase the assets under management.
Chaudhry said that within five years since the launch of the earlier offering targeted at the less-affluent, the bank has around 100,000 clients with assets under management of INR1.38tn. He said that the bank will collect advisory fee, which will vary based on the asset class.
The bank also launched a three-in-one card – credit, debit and forex card.