Axis Bank woos very wealthy

No-limit credit, multi-currency forex card among facilities; says affluent segment will grow fastest in coming years

To increase its base of wealthy customers, Axis Bank, the third largest private sector lender, has launched a new service.

Named Burgundy, it will offer services like no-limit credit cards and a multi currency foreign exchange card, among others. Customers with a relationship value of at least Rs 30 lakh will qualify. Of the existing base, 40,000 account holders come in this. In the next 12 to 18 months, it aims to add another 75,000-100,000 customers in this segment.

“As the economy grows in the coming years, the affluent section is expected to grow at a much faster pace as compared to the other section. The affluent class is expected to grow in excess of 20 per cent (yearly), compared to the mass affluent base which is expected to increase by 12-15 per cent and the mass segment which is likely to grow at five per cent. So, we intend to focus on this segment now,” said Rajiv Anand, head of retail banking.

Apart from the credit card and forex card facilities mentioned earlier, there will be integrated wealth management solutions across all asset classes, customised solutions for business and capital raising requirements, and preferential services and lending rates to Burgundy consumers.

“The feedback is that customers in this segment are looking for hassle-free experience. So, we have decided to offer a guarantee for certain services,” added Anand.

Axis Wealth & Axis Privee, their two earlier offerings in the premium banking space, are to be combined for Burgundy. In Axis Wealth, the relationship value required was similar, though the features were different. Axis Privee was only by invitation.

Banks have been turning their focus on the affluent category. ICICI Bank offers privileged savings account for customers who maintain a high relationship value. The bank decides about consumers who qualify for this, depending on the amount maintained by them across accounts.  HDFC Bank offers Imperia, for which consumers needs to keep an average monthly balance of Rs 30 lakh or an average quarterly balance of Rs 10 lakh in a savings account or Rs 15 lakh in a current account.

Axis has hired the father-daughter duo of Prakash Padukone & Deepika Padukone  as brand ambassador for Burgundy.