Here at Capital Hedge via our FINTRX Platform, we’ve learned that Kotak Mahindra Bank’s private wealth is positioned to increase rapidly given its demonstrated ability to deliver the right mix of people, products and platform. This comes from Jaideep Hansraj, Kotak’s head of wealth management and priority banking. Hansraj has fashioned the evolution of this arm of Kotak’s business based on a simple philosophy. “The three key things I have worked hard to closely guard are my people, our products and the platform,” he explains. If all three components are in place and well-executed at any private wealth firm, the chances of building, retaining and expanding the business become very real.
“Whenever I look at competing firms, I base my assessment on how well the firm will stand on each one of the three pillars,” adds Hansraj. As things stand, he says his strength is the operational side of his business. “We are among the few players having a demonstrated expertise of over two-and-a-half decades. In the past three years, we have… focused on expanding our advisory services to boost our existing relationships with clients,” he explains. And with his AUM in the private wealth arm having grown by almost 45% in 2016/17, he clearly has confidence in the business model.
Hansraj manages two divisions of Kotak Mahindra Bank – Kotak Wealth Management, the unit focusing on niche needs of Indian UHNIs located both in India and abroad; and Kotak Priority Banking, a division focusing on the investment and banking needs of mass affluent. Under Kotak Wealth Management, he also oversees family office and offshore wealth propositions, which includes exclusive offerings on investments, banking, succession planning and family wealth structuring.
With a huge chunk of upper-end Indian wealth being contained within family networks, Hansraj is keen on the target audience who needs advice and guidance for wealth management. “I see huge traction in our trusteeship business… [as well as] our pure advisory business,” he notes.
However, changes in investment attitude may be attributed to the changing of the guard with business-owning families, as new generations take control. But Hansraj is reluctant to pinpoint any hard-and-fast new strategies that his team may be looking to deploy for clients. “Every individual – whether family office member or adviser – is different, and each member of the next generation is different,” he says. “...The requirements of each generation differ, with the youngest keener on technology and less interested in safe, steady investments.”
While there is no set pattern, however, the people, product, platform philosophy remains core to the Kotak offering. As a result, the broad things Hansraj says he would expect, or want, to advise the younger professionals coming into the wealth management business today, would be to formulate a generic practice on how to manage different generations. “In my opinion, they should be treated on a family-to-family basis,” adds Hansraj.
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