Union Bank of India (UBI) will open a separate wealth management vertical in the current financial year to attract and retain HNI (high networth individual) and NRI (non-resident Indian) customers by providing them investment management services under one roof, according to A Manimekhalai, MD and CEO.

“We have already recruited a person in the general manager rank. We want to maintain relationship with customers. That is what we are trying to do through this wealth management vertical,” said Manimekhalai.

“Now, we have about 14 crore customers. Of this, about 7 crore are active customers. We will tap these active customers,“ she said in an interaction with businessline.

State Bank of India and Bank of Baroda are among public sector banks that have a dedicated wealth management vertical for affluent customers. Wealth management usually entails providing investment management, estate and tax planning, among others, by financial experts.

Retaining customers

Manimekhalai emphasised that “wealth management will ensure that we retain our customers. For example, our average product per customer is 1.67. So, if we have a wealth management service, we can offer more products.

“Customers need not go to any other asset management company or insurance company. They needn’t go to anybody else to buy financial products. We will have all that the customer needs. His investment needs can be addressed by our platform,” she said.

The Union Bank chief observed that wealth management offering is very important for HNI and NRI customers.

“They will be happy that somebody is giving advise on how keep money and to invest funds. So, the relationship and bonding with the customer increases with this type of offering,” she said.