Large Capital Investment in Wealth Management
Hence, after a considerable increase in the reach of the top 10 public sector banks to the costlier segments, the State Bank of India, the largest lender in the country, seems to have further ramped up its efforts to woo the high net worth individuals.
They are altering their wealth management strategy as the number of prospective customers with such status rises. The existing approach of the bank, which was characterized by Chairman Dinesh Khara as rather now outdated, is going to be reformed.
Bringing a Large Team for Personal Approach
SBI is planning to use around 2,000 officials especially to focus on the relationship management part as the bank works for improvement in its wealth management services. These professionals will have the primary duty of ensuring good rapport with the clients.
This is in line with the plans of the bank to improve its outreach services more especially to small and medium enterprises as well as the wealthy population within the country.
Leveraging Existing Strengths
Khara also noted that SBI also has a large outreach of branches and financial service offerings that makes the delivery channel to its clients appropriate. The main competence of the bank is financial products and services, and this is where it wants to strengthen itself in the wealth management field.
Future Trends and Present Concerns
While Khara did not reveal the current AUM for SBI’s wealth unit, the fact that the bank has refocused on wealth management suggests a new direction to leverage the growing class of high net worth individuals.
Thus, through the modernisation of its approach and the use of existing resources, SBI is likely to establish a firm foothold in the competitive Wealth Management market.
