It’s time for the Indian wealth management industry to look at moving away from the common approach of hiring people with a single focus of driving revenues up.
Instead, Anshu Kapoor, head of private wealth management at Edelweiss Global Wealth Management, says the focus should be on client orientation.
For example, the accent should be on attributes such as how will a 30- to 35-year-old relationship manager (RM) deal with a client who has hundreds or thousands of crores of wealth – not only on skill-sets and revenue goals.
Culture of collaboration is what will drive success, he believes. There should be sharing of information among intra-office teams without considerations such as “what will be my revenue share?” explains Kapoor.
Within Edelweiss, for instance, the team is made up of people from various backgrounds – including investment banking and fixed income. Selection is now rigorous and job aspirants even go through a psychometric test.
This has created what he describes as an ‘A-team’ that has made the firm successful on across all key parameters over the last seven years – reflected in terms of assets per client and assets per RM.
While the industry should wean itself away from measuring performance by how much revenue an RM brings in, Kapoor adds that it should also stop incentivising them purely to create revenue.
Edelweiss, he says, makes no promises of fancy trips for top-performers, but rather celebrates when an RM achieves 100% client-satisfaction levels.
Such a sense of ownership will make the team successful and, in turn, the organisation. It's a powerful message, says Kapoor.