To scale-up and take advantage, the Indian wealth management industry has to align itself to the long-term goal of providing efficient solutions to customers says Krishnamurthy. The underlying mindset of the industry needs to be that “they are not in this business for today or tomorrow, but forever.”
The good news for the Indian wealth management industry is that despite being at a very nascent stage, it is already acting in a very professional manner with a strong governance model and distribution capability.
Krishnamurthy believes that the standardisation of the Indian wealth management industry will be a step in the right direction. The Reserve Bank of India has done an exceptional job in making the operations of banks more transparent. However, in the case of the wealth management industry, there is a further need to standardise the definitions to avoid misunderstandings with the customer.
Digital innovation is a pre-requisite for a successful business model in three fundamental areas. The first is “customer interfacing digital play” or how easily the customer can understand the content of the mobile application / internet banking platform. The second area is how quickly the relationship managers and the business team can interact with the digital tools. And finally, the platform that acts as the foundation for the entire digital platform.