Wealth Managers: Retail Brokerages in India

May 19, 2010
Industry Trends
Asia-Pacific

Abstract

Brokerage houses in India are trying to adopt a multi-modal distribution model to increase market share. Firms are trying to graduate up the value chain to increase profitability and create a new platform for positioning themselves as wealth managers.

The retail brokerage market in India is expected to exceed 20 million investors in the next two years. The industry is one of the most important provider classes in the wealth management space in the country—vertically cutting across all customer segments and horizontally cutting across all asset classes. In a new report, Wealth Managers: Retail Brokerages in India, Celent explores the evolving retail brokerage landscape in India. The report details the nuances and complexities of India’s retail investment management industry.

“Huge market potential has attracted a bevy of brokerages looking to seize available opportunities,” says Ravi Nawal, Senior Analyst with Celent’s Indian Financial Services Group and author of the report. “Brokerages are increasingly trying to strike a balance between addressing customer segments profitably and grabbing market share by repositioning themselves on a suitable wealth management platform.”

This report examines the evolution to a wealth management positioning for the brokerage houses. It looks at the competitive landscape, the offerings, economics of the business model, the distribution channels, and the regulatory environment.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Market Overview

6

Brokerages as Wealth Management Outfits

17

Business Models

22

Regulatory Environment for Retail Broking Industry

31

Conclusions

32

Leveraging Celent’s Expertise

34

Related Celent Research

36

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