Bajaj Finserve Ltd, the financial services arm of the Bajaj Group, has launched its wealth management business through Bajaj Financial Solutions Ltd (BFSL), a wholly-owned subsidiary incorporated around two years back.

The company will target middle-class customers with annual savings in the Rs 2-10 lakh bracket and offer personalised advice with their financial planning process on the basis of a risk-return profile prepared using specially developed software.

“There is a large enough opportunity to put our efforts in at the middle-class level. We want to understand how low we can go, and see if the economics work,” Mr Sanjeev Bajaj, Managing Director, Bajaj Finserve, said, adding that the company had no plans to enter into wealth management for HNIs (high net worth individuals) in the near future.

More branches

To start with BFSL has begun operating through a network of four branches in Pune, Aurangabad, Chandigarh and Ludhiana, and will add 11 new branches at Mumbai, Delhi, Bangalore, Pune, Thane, Panchkula, Lucknow and Faridabad during this fiscal. The company plans to expand the network over the next few years and add 10-15 branches every year.

Mr Arpit Agarwal, CEO, BFSL, said that clients will have to be involved with their own financial planning and make informed decisions. The company will help them understand their risk profile, provide a perspective on their past and future savings and investment habits, and assist in preparing a financial plan, including recommending investment avenues and simulations of future financial position. The entire bouquet of services will be available for a flat fee of Rs 3,000 annually.

During the pilot it initiated in the four cities, BFSL has interacted with 3,500 customers.

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