India’s wealth managers find profit in the provinces
The face of wealth management in India is changing, as vast fortunes are made by young digital disruptors and as private banks venture out of the main commercial hubs in search of untapped profit and potential in second-tier cities.
Things are moving fast in Kolkata
India’s leading private banks are adapting to a rapidly shifting landscape, as vast amounts of new wealth are created in new industries, by young entrepreneurs, many of them based in teeming provincial centres far from first-tier cities.
Asia’s third-largest economy is one of the industry’s genuine bright spots. According to Hurun’s 2018 Global Rich List, India added 31 new billionaires in 2018, taking its total to 131, behind only the US (571) and China (819).
India’s super-wealthy benefited from a booming economy, tipped by Moody’s Investors Service to grow by 7.5% in 2019, and a record year for domestically listed stocks.
Anshu Kapoor, head of private wealth management at Mumbai-based Edelweiss Financial Services, tips the number of high-net-worth (HNW) Indian families to double between now and 2025, to 500,000, with a total cumulative net worth of $5 trillion.
He says: “[Of that total], 50% to 55%, or nearly $3 trillion, will be created by new entrepreneurs. This is the key theme for the industry.”