Private Capital
Private equity investor validated a 30% growth opportunity in India's digital wealth advisory market
15 Jun 2023
Context- A
private equity investor was seeking to assess the current status & future
direction of the wealth advisory and distribution industry, with focus on
emergence of digital wealth advisory in India and its future prospects
- The
client wanted to gain comprehensive knowledge of key industry players, customer
feedback of digital wealth advisory platforms, with deep-dive into customer
behavior (before, during and post selection of these platforms) the value
proposition provided by new-age wealth advisory platforms to financial advisors
Approach
- Industry
assessment: Evaluated the wealth management opportunity and growth potential
based on trends in household wealth, asset mix, growth drivers, current and
expected digital penetration, and evolution of different business models
(advisory/ distribution) for customers across income groups and asset classes
- Competitive
benchmarking: Benchmarked leading advisory platforms to understand key USPs and
differentiated value proposition offered
- Customer
feedback: Understood the customer lifecycle starting from need for wealth
advisory services to platforms selection criteria, onboarding, investment
patterns, usage and platform feedback through multiple discussions with
customers of digital wealth advisory platforms
- Advisor
perspective: Studied the various models adopted for onboarding and managing
advisors, especially for new-age platforms, understood the advisors’
perspective on the value proposition/ benefits provided to them by new-age
wealth advisory platforms
Praxis
value delivered- Provided
a holistic view of the emerging wealth management market in India and the
expected digital penetration in both advisory and distribution business across
asset classes to the client
- Helped
the client understand the customer behaviour across the lifecycle – selection
of a wealth management platform, their usage pattern, and strengths and
improvement areas for digital wealth advisory platforms
- Client
also gained insights on how wealth management platforms source their clients,
reasons for financial advisors to join a certain platform, value proposition
and compensation offered, strengths and improvement areas, and the switching
propensity of advisors
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