Union Bank of India (UBI) will open a separate wealth management vertical in the current fiscal year to attract and retain HNI (High Net Worth Individuals) and NRI (Non-Resident Indian) clients by providing investment management services under one umbrella ceiling, according to A Manimekhalai, MD and CEO.
“We have already recruited a person in the rank of general manager. We want to maintain the relationship with customers. That is what we are trying to do through this wealth management vertical,” Manimekhalai said.
“Now, we have around Rs 14 crores of customers. Of this, around Rs 7 crores are active customers. We will take advantage of these active customers,” she said in an interaction with Line of business.
State Bank of India and Bank of Baroda are among the public sector banks that have a vertical dedicated to wealth management for wealthy clients. Wealth management typically involves the provision of investment management, wealth, tax planning, and other services by financial experts.
client retention
Manimekhalai emphasized that “wealth management will ensure that we retain our clients. For example, our average product per customer is 1.67. So if we have a wealth management service, we can offer more products.
“Clients don’t need to go to any other asset management company or insurance company. They don’t need to go to anyone else to buy financial products. We will have everything the client needs. Your investment needs can be served by our platform,” he said.
The Union Bank chief noted that the wealth management offering is very important to HNI and NRI clients.
“They will be happy that someone is giving advice on how to save money and invest funds. So the relationship and the bond with the customer increases with these types of offers,” she said.