Money & Banking

IndusInd Bank forays into wealth management via Pioneer platform

New Delhi | Updated on January 28, 2020 Published on January 28, 2020

IndusInd Bank is eyeing a Net Relationship Value (NLV) of ₹70,000 crore in the next three years under its newly launched wealth management platform Pioneer, a top official said.

The private lender, which did not have a full-fledged wealth management proposition, formally launched one under the Pioneer platform last week.

“We had done a soft launch a year back. Now, we have done a formal launch. In the next three years, our aspiration is to achieve a Net Relationship Value of ₹70,000 crore from the current level of about ₹12,000 crore,” Samir Dewan, Head-Affluent Banking and Client Experience, IndusInd Bank, told BusinessLine.

Prior to this, IndusInd Bank had a relationship management channel, but not a customised wealth management proposition. When asked if IndusInd Bank was entering the wealth management space a bit late in the day, Dewan said that IndusInd Bank’s offering in this space was the strongest in the market.

“While there are advantages of being a first mover, I do believe there is value to be created if you do it at a later point of time. Now we have the advantage of looked at all the propositions that exists.

What works and doesn’t work, do a comparison with what other banks have to offer, and try to improve on each front. I do believe that what we are offering is the strongest proposition that exists in the market. We may be a late entrant but the market is huge. If we have a compelling proposition, there is good opportunity,” said Dewan.

IndusInd’s Pioneer banking platform starts at ₹30 lakh and targets the “well-to-do and well-off” and not necessarily only the ultra-high net-worth individuals. “It could go from ₹30 lakh to say ₹300 crore,” he noted.

For the Pioneer platform, IndusInd Bank is aiming to increase the number of relationship managers to 300 in two years from now and to 500by the end of three years.

“There is an advantage of coming late in the market. In our research, we found that trust and transparency were the two values that got missed out in most offerings. We have got that covered in our Pioneer proposition,” said Dewan.

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Published on January 28, 2020
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