Digitalization & reforms to boost the wealth market in India

financialexpress.com:

The Indian wealth management business is expanding and offers both domestic and international players a sizable opportunity. Fintech players, however, are posing greater threats to established businesses with their product, pricing, and digital differentiation, intensifying the competitive environment. Players in the wealth management industry in India would need to react both strategically and creatively to be able to compete in a market that is rife with rising client expectations for individualized goal-oriented services and digital experiences.

Although banking scions and merchant dynasties have long been known to congregate around India’s largest conurbations, such as Mumbai, New Delhi, and Hyderabad, but more millionaires are now appearing in 2 and 3-tier cities that are thought of as less developed but nonetheless populated. Among the BRICS nations, India has the second-highest proportion of high-net-worth individuals (HNIs), while having a lower wealth distribution than western markets.

Indian individual investors have started buying stocks through mutual funds, with the amount invested through systematic investment plans (SIPs) reaching a new high of over Rs 16,000 crore for the first time. Despite recent global market upheaval, this trend has been affected by the stock market’s strong September 2023 performance.

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In the upcoming years, it is projected that the wealth management industry in the nation would expand significantly. The broad adoption of fresh, creative distribution methods that increase the availability and affordability of wealth management services will be the main driver of this growth. Therefore, in light of the growing competition