Number of high net worth Indians is growing at an annual rate of 20 per cent and several banks, especially private

and foreign banks, are scouting for these customers with services specific to their goals and pampering them with a host of other goodies The annual World Wealth Report ranked India as the 12th largest country with 1.53 lakh HNIs in 2010 IF YOU are a high net worth I individual (HNI), then you are the customer that all banks would want as a client. With India's HNI population growing at an annual rate of 20 per cent, banks are not only offering innovative banking products but also a host of services and benefits specifically for them. Private banks and foreign banks are more aggressive in area of private banking. Nitin Rao, senior executive vice-president (private banking) at HDFC Bank, said, With the country's GDP (gross domestic product) growing above 8 per cent, we are getting HNI customers not only from urban and semi-urban areas, but even from rural areas with equal propensity. The business from HNIs is growing at 20-30 per cent on a year-on-year basis for banks. The annual World Wealth Report of Merrill Lynch Global Wealth Management (MLGWM) and Capgemini ranked India as the 12th largest country with 1.53 lakh HNIs in 2010. Individuals having investible assets of $1 million or more, excluding primary residence, consumables, durables and collectibles were identified as HNIs. Banks offer investment management, financial planning, trust services, philantrophic advisory and a host of privileges for HNI customers. Qualifying norms he eligibility criteria to qualT ify as a private banking customer varies from bank to bank. Take for instance HDFC Bank and Kotak Bank where the customer should have a surplus of Rs 5 crore and above, while in case of Royal Bank of Scotland (RBS India) the customer should have banking assets of more than Rs 4 crore to qualify as a private banking customer. In our case, the client should have an overall relationship that includes his banking and investment upwards of Rs 4 crore. Our approach with our clients is not product-based but based on their financial goals, Prateek Pant, head of wealth solutions at Royal Bank of Scotland (India), said. In order to meet the HNI's financial goals, while formulating an investment strategy, banks take into account their investment objectives, the investment timeframe, and risk appetite. The bank's clients are well travelled and are exposed to global banking platforms, so their expectations are benchmarked against what global banks offer, he said. Indian banks have to ensure that innovative products and a seamless service experience are provided, added Pant. Dedicated team anks dedicate a full-time B client relationship manager and an investment adviser to take care of an HNI customer's investments, be it advising on investments, tax saving or even having a demand draft issued. The dedicated team ensures that the customer is kept abreast of new fund offerings and fund performance. Fee income he fee charged T by banks is a percentage of the total assets managed, the asset class chosen and the duration of the transaction. It is mutually agreed upon between the client and the bank. It depends on the advisory platform suitable for a client. An asset under management-based fee would be more suitable for a client looking for a longer-term strategic portfolio, while a transactional fee would appeal to clients who are more oriented towards short-term opportunities. In either case, the fees could be up to 1 per cent, said g Pant. 4 r t Product offerings n addition to standard I banking products, such as fixed deposits, NRE deposits, gold exchange-traded funds (ETFs), direct equity investments, mutual funds, insurance products, banking account and credit card services, banks offer specialised products, such as structured prod ucts, real estate, private equity, derivatives, estate planning, commodities and even art investments products. Some banks offer various investment products through a transaction format where the execution of these transactions is carried by the lender on the customer's behalf. Estate planning ome banks provide estate S planning services to help an HNI customer plan for a harmonious succession and disposition of his estate in addition to managing the estate during and beyond his lifetime. Other services anks provide referral for B philanthropic services and concierge services. Family office services amily offices function as priF vate wealth management advisory outfits. The bank provides services for building, preserving and transferring family wealth and legacy. Banks could also help in drafting wills, trust deeds and ancillary documents tailored to specific family needs. Trusteeship anks act as a corporate B trustee for administration and distribution of an HNI's estate. Safe custody anks provide safe custody B for all the movable assets such as jewellery, paintings and title

documents of various properties. Other privileges Preferred recognition at all branches Exclusive phone-banking services Access to select premium lounges Setting up of exclusive meeting rooms for the customer High daily cash withdrawal limit on debit card Loans and gold bars at preferential rates Free personal accident and health insurance cover of high value Discounts on travel Opportunity to write for the bank's in-house magazine Invitation to exclusive events with celebrities Such customers not only get better rates, a lot of waivers, dedicated points of contacts, ongoing financial advisory and prompt service, Rao said. On a constant basis, we organise exclusive events for our HNI clients such as a musical events based on a particular genre, be it Sufi or Indian classical. For children of these clients, we organise training sessions on finance and investments. Movies and golf events are a constant feature, he added.

anks woo HNIs for privilege services

By Falaknaaz Syed Jul 31 2011 , mumbai If you are a high net worth individual (HNI), then you are the customer that all banks would want as a client. With Indias HNI population growing at an annual rate of 20 per cent, banks are not only offering innovative banking products but also a host of services and benefits specifically for them. Private banks and foreign banks are more aggressive in area of private banking. Nitin Rao, senior executive vice-president (private banking) at HDFC Bank, said, With the countrys GDP (gross domestic product) growing above 8 per cent, we are getting HNI customers not only from urban and semi-urban areas, but even from rural areas with equal propensity. The business from HNIs is growing at 20-30 per cent on a year-on-year basis for banks. The annual World Wealth Report of Merrill Lynch Global Wealth Management (MLGWM) and Capgemini ranked India as the 12th largest country with 1.53 lakh HNIs in 2010. Individuals having investible assets of $1 million or more, excluding primary residence, consumables, durables and collectibles were identified as HNIs. Banks offer investment management, financial planning, trust services, philantrophic advisory and a host of privileges for HNI customers. Qualifying norms The eligibility criteria to qualify as a private banking customer varies from bank to bank. Take for instance HDFC Bank and Kotak Bank where the customer should have a surplus of Rs 5 crore and above, while in case of Royal Bank of Scotland (RBS India) the customer should have banking assets of more than Rs 4 crore to qualify as a private banking customer. In our case, the client should have an overall relationship that includes his banking and investment upwards of Rs 4 crore. Our approach with our clients is not product-based but based on their financial goals, Prateek Pant, head of wealth solutions at Royal Bank of Scotland (India), said. In order to meet the HNIs financial goals, while formulating an investment strategy, banks take into account their investment objectives, the investment timeframe, and risk appetite. The banks clients are well travelled and are exposed to global banking platforms, so their expectations are benchmarked against what global banks offer, he said. Indian banks have to ensure that innovative products and a seamless service experience are provided, added Pant. Dedicated team Banks dedicate a full-time client relationship manager and an investment adviser to take care of an HNI customers investments, be it advising on investments, tax saving or even having a demand draft issued. The dedicated team ensures that the customer is kept abreast of new fund offerings and fund performance. Fee income The fee charged by banks is a percentage of the total assets managed, the asset class chosen and the duration of the transaction. It is mutually agreed upon between the client and the bank. It depends on the advisory platform suitable for a client. An asset under management-based fee would be more suitable for a client looking for a longer-term strategic portfolio, while a transactional fee would appeal to clients who are more oriented towards shortterm opportunities. In either case, the fees could be up to 1 per cent, said Pant. Product offerings In addition to standard banking products, such as fixed deposits, NRE deposits, gold exchange-traded funds (ETFs), direct equity investments, mutual funds, insurance products, banking account and credit card services, banks offer specialised products, such as structured products, real estate, private equity, derivatives, estate planning, commodities and even art investments products. Some banks offer various investment products through a transaction format where the execution of these transactions is carried by the lender on the customers behalf. Estate planning Some banks provide estate planning services to help an HNI customer plan for a harmonious succession and disposition of his estate in addition to managing the estate during and beyond his lifetime. Other services Banks provide referral for philanthropic services and concierge services. Family office services Family offices function as private wealth management advisory outfits. The bank provides services for building, preserving and transferring family wealth and legacy. Banks could also help in drafting wills, trust deeds and ancillary documents tailored to specific family needs. Trusteeship Banks act as a corporate trustee for administration and distribution of an HNIs estate. Safe custody Banks provide safe custody for all the movable assets such as jewellery, paintings and title documents of various properties. Other privileges n Preferred recognition at all branches n Exclusive phone-banking services n Access to select premium lounges

n Setting up of exclusive meeting rooms for the customer n High daily cash withdrawal limit on debit card n Loans and gold bars at preferential rates n Free personal accident and health insurance cover of high value n Discounts on travel n Opportunity to write for the banks in-house magazine n Invitation to exclusive events with celebrities Such customers not only get better rates, a lot of waivers, dedicated points of contacts, ongoing financial advisory and prompt service, Rao said. On a constant basis, we organise exclusive events for our HNI clients such as a musical events based on a particular genre, be it Sufi or Indian classical. For children of these clients, we organise training sessions on finance and investments. Movies and golf events are a constant feature, he added. falaknaazsyed@mydigitalfc.com