SBI reworks strategy for HNI customers

The pilot that was rolled out in Bengaluru early this year, SBI Exclusif, witnessed encouraging results with 50% more response than projected

State Bank of India (SBI), the country’s largest lender, is reworking its strategy for high net-worth individuals (HNIs) and households with emphasis on delivering services to these clients without them having to venture out of the comfort of their home.

“The bank is looking at the upwardly mobile middle class to help them ensure their wealth grows. We feel this offering will find a lot of takers,” said SBI Chairman Arundhati Bhattacharya (pictured).

The pilot that was rolled out in Bengaluru early this year, SBI Exclusif, witnessed encouraging results with 50 per cent more response than projected.

Exclusif services would be rolled out in Delhi by the end of this month and in the other parts of the country later, said another senior SBI executive.

Under this service, SBI will give services in person or through remote mode. It would also give the total portfolio of banking services that could be operated from home. The facilities would include video chat or interaction over the phone to give instructions and get services delivered at clients’ doorstep.

There is also a facility for investment advisory. Under this, managers will assess clients’ risk appetite by asking several questions. Once they understand the goals and risk appetite and portfolio, they would give suggestions on getting optimum results. The portfolio could be reviewed at regular intervals to see if it is getting the desired results.

As of now, the bank is not charging any fee for these services. “The idea is to give you the experience of a portfolio without moving out of the comfort of your home. If customers still wish to visit the branch, he or she is more than welcome,” the SBI chairman added.

Wealth management is an advanced form of financial planning that provides individuals, companies and families with asset management, investment management, taxation advice and portfolio management services, among others. Wealth management business has typically been an offshoot of the growth in discretionary income.

According to McKinsey’s Global Wealth Management Survey, banking-led players are the most profitable, thanks to their significantly better cost margins than pure-play advisors, who don’t have a banking licence. The industry also witnessed a slight shift in the revenue mix, with a higher share of revenue coming from standard banking pools and recurring revenue, and a slightly lower share from brokerage revenue, the survey said.