Federal Bank has introduced a new wealth management platform called ‘Fed Wealth’ and inaugurated its first Wealth Hub in Kochi as part of its strategy to expand in the wealth management segment. The initiative aims to strengthen services for affluent and ultra-high-net-worth individuals (UHNI).
The newly launched platform will offer a wide range of investment solutions, including fixed income products, equities, mutual funds, alternative investments and opportunities through GIFT City.
As part of this move, Federal Bank has also restructured its existing arrangement with Equirus Capital to enhance product offerings and improve the service architecture for high-value clients.
Commenting on the development, KVS Manian, MD and CEO of Federal Bank, said, “In the next phase of growth, we would like to invest more and create our own franchise in this space. We value our association with Equirus and look forward to continued collaboration in areas of mutual strength.”
Federal Bank currently holds an 8.69% stake in Equirus. The bank confirmed that it will continue to work with Equirus to serve UHNI customers by offering select products and services from the Equirus wealth management suite.
Clients who are currently receiving wealth management services through the existing arrangement with Equirus will continue to access those services without disruption under the current framework.
Ajay Garg, Managing Director of Equirus Capital, said, “As envisaged in the partnership, we had entered into the wealth management business 7 years ago and have been able to establish ourselves as one of the top 10 players in the wealth management business with presence across 23 cities.”
The wealth management business at Federal Bank will be led by Virendra Somwanshi, Executive Vice President and Head of Wealth & Banca at the bank. He brings nearly 30 years of experience in private wealth management, retail banking and financial services.
Federal Bank also plans to establish Wealth Hubs in key cities to provide clients with a premium and private environment. These hubs will allow customers to interact with relationship managers and portfolio counsellors, review investment strategies and access research insights across different asset classes through both in-person and virtual consultations.
The bank’s move comes at a time when both global lenders and domestic private banks are increasing their focus on India’s rapidly growing wealthy population. Financial institutions are expanding wealth management services to capture opportunities in this segment.
For example, Axis Bank has reportedly been hiring more than 50 wealth managers for its Burgundy Private banking division. International lenders such as HSBC Holdings and Standard Chartered Bank, along with domestic players like Kotak Mahindra Bank, have also been expanding their wealth management offerings and setting up dedicated hubs in cities with a large base of affluent clients.
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