ICICI Securities to double wealth team, eyes $60 billion of assets

ICICI Securities to double wealth team

In the next two years, ICICI Securities Ltd. plans to treble the number of its wealth managers and increase the assets from wealthy clients to $60 billion as competition heats up in India’s quickly expanding wealth sector.

According to Anupam Guha, business head of private wealth management at ICICI Securities, the current crisis at Credit Suisse Group AG and the uncertainties surrounding its wealth business in India could present some employment prospects.

The ICICI Bank subsidiary’s wealth management division wants to quadruple its staff of about 350 relationship managers and about 100 virtual managers.

As more Indians become accustomed to professional wealth management, the country’s $600 billion wealth business is expanding by 12% annually. In order to handle additional assets, large Indian banks like ICICI, Axis Bank, and Kotak Mahindra Bank are aggressively promoting their services to wealthy clients. To get a piece of the action, HSBC Holdings Plc aims to introduce its onshore private banking service in India. Julius Bär Group Ltd. and LGT Wealth India, which is owned by the Liechtenstein royal family, are both expanding their wealth businesses there.

From $12 billion in 2019 to $39.47 billion in 2022, ICICI’s assets have more than tripled. According to Guha, the company’s private wealth customers climbed from 30,000 to 80,000 within the same three-year period, and its revenues multiplied by four.

“In 2019, we used to generate 2 billion rupees ($24.3 million) in revenue. Currently, we measure that sum every three months, Guha added.

According to Guha, Indians with wealth between $1 million and $50 million represent the ideal clientele for ICICI’s wealth section.

‘Grown-rich Indians,’ who value brand and good service and are prepared to pay for advise,’ number close to 800,000 “said Guha. According to him, customers park an average of $500,000 with ICICI.

Guha claims that rather than merely trying to maintain their wealth, this cohort invests in growth assets.

The company uses a combination of real and what it refers to as “virtual” relationship managers who are available on video, phone, or WhatsApp to cater to its main group of clients, even though it services clients with over $50 million in assets through dedicated managers in its family office business.

Guha views industry competitiveness as “all-pervasive.” “.

Someone who may enter and radically reimagine wealth management may exist who we are not even currently contemplating as a competitor, “added Guha. “For instance, one of the big IT companies with the brand and the technical capabilities could be the culprit.”