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A Project Report on Branch Banking and Wealth Management At HSBC
Submitted by Aditya Patnaik (Student BIMTECH, Noida)

Project submitted in partial fulfilment for the award of Post Graduate Diploma in Management

ACKNOWLEDGEMENT

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We convey our deep acknowledgement to all those who made it possible for us to complete this project, by extending their support and continuous co-operation. We would like to acknowledge the consistent encouragement extended by the Director, Faculty members of our institution. Our sincere gratitude to the project guide Mr N Suresh, VP and Branch Head, HSBC; Mr Sreejith, Associate VP- Customer Services, HSBC; Mr Mohan, Associate VP- Wealth Management Services, HSBC, whose constant guidance, efforts, heartfelt support, suggestions and consideration helped us in the successful completion of this project. We also extend our humble thanks to all the executive and non executive staff members of HSBC for their full hearted support and assistance during our stay at HSBC. We would also like to thank all the respondents who gave their valuable information.

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Contents

Contents................................................................................................................ 3 Executive summary...............................................................................................4 Introduction........................................................................................................... 6 The Analytical Hierarchy Process (AHP)..............................................................7 Background of study..............................................................................................8 The current scenario...........................................................................................8 Wealth Management Scenario in India.............................................................12 Process of wealth management...........................................................................14 Key Challenge Areas............................................................................................16 Objectives of study..............................................................................................18 Scope of study..................................................................................................... 18 Limitations of study.............................................................................................18 Research Design..................................................................................................19 Sample Design..................................................................................................19 Data Collection ................................................................................................19 Analysis and Interpretation..................................................................................21 Understanding various Investment options:........................................................29 Various options available for investment:.........................................................30 Every investment has an attached risk.............................................................33 Comparison of HSBC with major players..............................................................35 Company (HSBC) Profile:..................................................................................35 SWOT Analysis of HSBC:......................................................................................42 Analysis and recommendations:..........................................................................44 Bibliography.........................................................................................................49

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Executive summary
Wealth Management (WM) is an advanced type of financial planning that provides High Net Worth Individuals (HNWIs) and families with private financial services, such as asset management, banking, estate planning, investment management, and legal resources. The goal of WM is sustaining and growing long-term wealth of clients. To attract clients towards WM services, it is necessary to understand what influence consumers' decision when selecting WM services. Therefore, the AHP (Analytical Hierarchical Process) decision model is referred for identifying these factors. AHP converts a complex decision problem into a hierarchic structure by dividing the problem into several smaller components. The relative importance of these factors and alternatives are surveyed by directing a questionnaire to consumers who are using, or planning to use WM services. It appears that, in general, customers’ first concern about the WM service is the quality of service, followed by the products, and the image of the service provider. Further analyses by consumer attributes indicate that HNWIs are particularly concerned about the risk associated with the products offered by the WM service providers. Thus, to attract HNWIs, special attentions should be paid to the design of products with relatively less risk and acceptable returns. This report examines the early history of a new phenomenon – wealth management. It discusses whether it really is new, and also explains why the phenomenon has become so important to financial services companies and what they are doing about it. Finally, and perhaps most importantly, it discusses the real changes that customers are expecting and should expect in the services, that they are being offered. The feeding frenzy of financial services companies is evident, but consumer enthusiasm is not. This is because of the restrictive definition of wealth management adopted by most of these suppliers, and the lack of clear benefit for the consumer. Thus, this paper attempts to identify the relative importance of factors perceived by potential customers’ in their WM selection process. This study may lead to a better understanding on the following questions: Do the priority weights of the highnet-worth customers present a different pattern? What should the WM service providers focus on when they try to meet the needs of their target-clients? The report first defines the idea of wealth management and then reviews the well-trodden ground of the evidence of market size. It also helps to understand the various investment

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avenues or options that an investor has for managing his/her wealth. It finally goes on to suggest what kind of company is likely to lead the wealth management market in the future by analysing the results obtained from the survey conducted from a sample size of 120 respondents and other relevant secondary data. The survey was conducted in the three shopping malls viz., Panjagutta Central, GVK One, Big Bazaar and at the HSBC bank in Hyderabad. The later part of report helps to understand customer’s perception towards the branch banking facilities which refers to a location where a bank, credit union or other financial institution (and by extension, brokerage firms) offers a wide array of face-to-face and automated services to its customers. The customers expect a quick and quality service from the bank in each and every transaction apart from improvements in the convenient banking facilities like phone banking and internet banking. The report also highlights the sales experience of CPP (Card Protection Plan) at the HSBC bank. The CPP is a recently launched plan by HSBC meant for protecting important cards like ATM cards, debit and credit cards and other important valuable documents like passport, driving licence, etc., in case it gets lost or any misuse takes place. The suggestions in the report on Branch banking facilities are presented by interviewing the customers, observing them at the tellers (counters) and observing them interacting with relationship managers at HSBC bank, Hyderabad.

interest charged on loans. be cognizant of the customers’ needs and desires (Graddy & Spencer. Zineldin. the institutions must now.Tan & Chua. both savers and borrowers. more than ever. friendliness and convenience but those consumers also view fair prices. The criteria and sub-criteria are summarized in Table 1(See Appendix). modern facilities. 1994). Leonard et al. and interest on savings accounts.6 |Page Introduction With rapidly changing business landscape and sophisticated customers. such as reputation. The priority of the criteria could vary with customers’ characteristics. followed by the efficiency of completing banking transactions and convenience.friendliness of employees. Recommendations were a common criterion in the studies (Martenson. Therefore. several properties (including gender. some are less important . and quality of service. Fast and efficient service and friendliness were found to be the most important selection criteria. Tan and Chua (1986) found that the recommendations of others were strongly influential. 1990). 1985. Boyd. 1986. and drive-in service. 1996). The typical customers can no longer differentiate between one intermediary and another (Boyd. As a result. reputation (positioning) and competitiveness of loans rates (price). Stafford (1994) found that customers want courtesy. Each criterion includes several sub-criteria to profile the dimension. nationality. (1994) argued that some criteria are more important. concerned management and institutional stability as integral components of the service process. Therefore. Khazeh and Decker (1992) indicated that the most important selection criteria were service-charge policy (price). . the competition for customers. Following the previous literature. could become fierce. & White. Leonard. annual income etc) of consumers are considered during the analysis. three dimensions of factors are considered which affect customers’ choice of WM: image. it has become very important that financial institutions understand the factors which are pertinent to the customers’ selection process. products. Gerrard and Cunningham (1997) suggested that the provision of a fast and efficient service and confidentiality were very strong influences. However. Kaynak and Kucukemiroglu (1992) investigated the importance of a series of factors in choosing a commercial bank.

AHP converts a complex decision problem into a hierarchic structure by dividing the problem into several smaller components. There are some applications of AHP in finance (Steuer. purchase decision (Byon. Sroufe. 2007). 1990. 1998). AHP method is referred for ranking the factors affecting consumers’ choice of WM services. 2005). capital budgeting (Tarimcilar & Khaksari. 2005). Zahraie. 1986). 2004. Liu & Hai. 2001. Jaafarzadeh. Israeli. including patent valuation (Chiu & Chen. health care (Liberatore. 1991). Saaty. and synergy allocation in mergers. such as portfolio management (Meziani & Rezvani. & Pell. 1980). 1980). 2007). forest management (Kangas & Kangas. 1990). Walton. 2008). 2003).7 |Page The Analytical Hierarchy Process (AHP) AHP is a powerful and flexible tool for multi-attribute decisions making developed by Saaty (1977. & Mahjouri. AHP has been widely adopted to reflect the importance (weights) of the factors associated with priorities in many fields (Vaidya & Sushil Kumar. 1999). Kerachian. investment selection. L. Zopounidis. .. waste management (Karamouz. credit evaluation (Yurdakul & Ic. 2003. In this paper. 2008). supplier selection (Handfield. land use planning (Ananda & Herath. Zahedi. et al. 2004) evaluation of a bank acquisitions strategy (Arbel & Orgler. Rogers. T. 2002. & Melnyk. operations efficiency improvement (Peniwati & Brenner.

acquisitions and the introduction of nontraditional players. Whatever is his need. reduce costs. A person may wish to save money for his children’s education or for buying a home. Out of the above mentioned services. The current scenario The wealth management marketplace is evolving with the expansion of an affluent client pool and increased competition created through mergers. In terms of products it includes stocks and stock trading. Wealth management services can help for all of financial goals through the relevant investment options and it can assist to make the right financial decisions. It can help to choose the right financial strategies and plans to create wealth now and preserve wealth for the future. The services include portfolio management and rebalancing. If the goal is saving. They are increasingly coordinating processes around their customers. They have long since realized the need to carefully evaluate and quickly deploy the right technology solutions to garner competitive advantage in the market. Wealth managers are setting business goals that require innovative technology solutions to help increase sales. Investment management and strategies. mutual funds and alternative investments. portfolio management is common service and most of other services are highly customized. equity linked and structured savings products. If his goal is associated with wealth creation. In the beginning it was investment advisory covering financial planning that provides individuals with private banking / asset management / taxation advisory and portfolio management. He would be planning for his retirement and worried about the transfer of pension in a new city. Financing tax advisory and estate planning. they can help him to get his money to work for by providing comprehensive and relevant information regarding various investments. The considerations to create or . Wealth management service provider may provide great help and assistance. retain existing clients and attract new ones. they can advice him regarding various saving tools through insurance or simple bank savings account.8 |Page Background of study Wealth Management as a concept originated in the 1990's in the US.

as opposed to products and transactions. to compare offerings and opt for the best. compliance and other country-specific mandates. is the focus. Strict adherence: Financial regulation. Banks geared to meet their needs build long-term relationships in which advice. traditional investment products and alternate investments. banks. Straight through Processing: End-to-end transaction processing for investments. They are also keen to maintain relationships with multiple banks.9 |Page strengthen a customer-centric model are complex. Consolidated view: Complete financial picture in one screen. • • Product types: Traditional banking. clearing houses. The spectrum of offerings is spreading and the scope of services is widening significantly. Concierge services: Lifestyle related value-added services. The primary differentiators are advisory capabilities. with bespoke investment options. rebalance portfolio against model portfolio. custodians and brokerage houses. A quick glimpse reveals the following: • • • Delivery channels: Anywhere and anytime through branch / call centre / online. relationship managers and financial planning experts to manage accounts and plan financial goals. but most firms have recognized that longterm success is determined by an organization’s ability to deliver customer-centric products and services. Wealthy individuals have multiple and complex financial needs. depositories. and facilitation of customer ease and convenience. Personalized services: Advisory services. Tax planning: Country-specific tax and social security One-stop financial shop: Interface with market data vendors. Customized views and reports: Portfolio specific or across portfolios. Banks are sparing no efforts to strategically . portfolio simulation and ‘what-if’ tools. Investment tools for customers and their financial planners to manage wealth: Analyze portfolio. product breadth. These banks establish multiple touch points with clients and typically benefit from enduring client loyalty and their predisposition towards referrals to prospective clients. • • • • • • Wealth management clients are demanding comprehensive and tailored services.

in a larger sense that banks have to . Both extremes showcase examples of successful high margin and high growth players.10 | P a g e transform their product offerings and services. Retail banks pushing into the ‘wealthy segment’ – a mix of the mass affluent and high net worth. Strategic business model On one hand. while revamping their technology infrastructure to differentiate themselves from competition. Without this insight. Insurance firms. as wealth management firms increasingly compete for the same high net worth clients. This has resulted in direct competition in a space dominated. On the other hand. private banks. even if they have already developed an accurate understanding of high net worth individuals in their established markets. Wealth management firms are making strategic investments to differentiate themselves in the eyes of existing and would-be high net worth and ultra-high net worth clients. As a result. there exist specialized wealth management boutique firms providing sophisticated products.the booming mass affluent segment and the high net worth segment. specialized services and niche area services for specific customer segments. Clearly.and advisor-centric models. and clients themselves become more demanding. the pressure is on firms to understand the essence of client needs in existing and growth markets. As a result. have realized that it is almost mandatory to design a service model flexible enough in architecture to accommodate diverse customer. It implies. banks are moving away from the conventional pure product focus and focusing on total solutions that are completely oriented to client needs. each of these players is looking at how best to differentiate its offerings. till recently by private banks and trusts. The wealth management space is now being catered to by different types of firms including brokers. retail banks and insurance houses. and all of them are vying for the same clients . brokerage service firms and retail banks are investing heavily on the advisor centric model and each one is trying to be the chosen wealth manager for the retirement segment as well as for the younger generations. firms will find it difficult to develop an attractive proposition. then. there are a small number of large global banks that have implemented integrated business models spanning across typical banking and investment products and services. Specialized wealth management firms catering to the high net worth segment have known for years that in this space one model do not fit all.

Revenue drivers Retail banks are establishing themselves in a space traditionally dominated by private banks and niche service providers. The wealth planning model offers holistic advice in accordance with client’s finances and goals. • The transactions model includes pure play brokers who facilitate investments in basic asset classes. Banks have identified key revenue drivers as: • • Revenue from distribution (third party products) Commission on transaction-based revenue (from execution broker) .and post-investment phase. retirement and generational wealth transfer. The chosen model has a direct impact on the revenue model for a bank in terms of fees and commissions. • • The investment management model includes advisors and relationship managers who plan. determine and advise customers in the pre. and product experts driving transactions through sophisticated products. The transaction model is typically fee-based and moves towards commissionbased revenue for wealth planning. The typical model on view is the distribution model with end-to-end services across the banking and investment domains. in order to handle the booming mass affluent segment and the lower end of the high net worth segment. These could encompass arenas such as real estate.11 | P a g e invest heavily in the underlying technology. At a very high level the models currently deployed are: • • • Transactions Investment management and Wealth planning Based on the conditions and the market environment a bank can choose to mix and match these models.

the wealth management industry is poised to gain greater traction in an expanding market. The client segmentation schema (as per the reports of Celent). With the liberalization of the Indian economy and subsequent growth and prosperity across sectors.8 million households by 2012. India is slated to become a US$1 trillion market (in assets under management) for wealth management providers by 2012. Mass market (between US$5. Super affluent (between US$125. with a target market size of 42 million households. Wealth Management Scenario in India The wealth management industry in India is experiencing an evolutionary phase of development. High net worth (between US$1 million and $10 million) will have a total population of 320.12 | P a g e • • Revenue from advisory services Cross-sell opportunities to existing customers Product manufacturing and revenue based on assets under management would be the way forward for banks.000 households by 2012.000 and $1 million) will have a total population of 350. Super high net worth (between US$10 and $30 million) will have a total population of 42. promises growth across all the six categories: • Ultra-high net worth.000 households by 2012. • • • • • . will have a total population of 10. or Ultra-HNW (in excess of US$30 million). In a new report.000 by 2012.500 households by 2012. Overview of the Indian Wealth Management Market.000) will have a total population of 39 million households by 2012. Celent examines how the wealth management industry is enhancing its relevance in this dynamic marketplace.000) will have a total population of 1. Mass affluent (between US$25.000 and $25.000 and $125. According to the report.

In the last five years.6% with affluent individuals totaling 618. India’s large skilled population and robust domestic stock market will ensure that this wealth continues to grow to almost one million individuals. asset management companies. A new report from independent market analyst Data monitor (DTML) reveals the Indian wealth market is offering competitors enormous opportunities. affluent wealth in India has grown at a rate of 17. insurance agencies. . even as revenue growth in this sector in Asia is expected to fall significantly over the next two years. The Indian market has a wide variety of financial institutions servicing the mass affluent and HNW segments. India is the second most attractive market for wealth management after China. with a collective wealth of over US $ 200bn by 2012. This includes brokerages.000 at the end of 2007.13 | P a g e Figure 1 According to investment banking firm Barclays Capital survey of Asia's leading wealth managers.

Independent firms.Anand Rathi. Credit Suisse and Barclays Capital are solely focused on the HNW segment. The personal financial planner should explain fully how he or she will be paid and by whom. While recent entrants into the Indian wealth management space. Security firms. Axis Bank. and Distribution (Estate planning). UBI.14 | P a g e independent financial advisers and private banks. Standard Chartered. A good wealth manager should take into the consideration the tax implications in each of these areas. banks such as Standard Chartered. Process of wealth management Generally most of the companies follow the same process to offer wealth management services. etc. Indian banks. Barclays. Deutsche bank. The major players offering wealth management service in India can be categorized into four major segments: • • • • Foreign banks. HDFC. Kotak Mahindra Bank. The job of the wealth manager starts with gathering data about the current financial situation of the clients and ends with review of the financial plan.HSBC.ASK wealth advisors. Motilal Oswal.ICICI. etc. . Preservation (Life Insurance). RBS. Religare. etc. Client and the planner should agree on how long the professional relationship should last and on how decisions will be made. such as Morgan Stanley. Citibank. HSBC and Kotak target both the HNW and the mass affluent segments. Establish and define the client-planner relationship: The personal financial planner should clearly explain and document the services that he or she will provide to client and define both his/her and Client’s responsibilities during the personal financial planning engagement. The personal financial planning process as per FPSB-India (Financial Planning Standards Board) consists of the following six steps: 1. IIFL. The major roles of the wealth manager include assisting clients on the three major areas: Accumulation (Asset management). It starts from assigning a wealth manager or relationship manager to the clients. etc.

he or she should report to client periodically to review Client’s situation and adjust the recommendations. coordinating the process with client and other professionals such as attorneys. liabilities and cash flow. investments or tax strategies. 5. The planner should go over the recommendations with client to help client understand them so that client can make informed decisions. Depending on what services client have asked for. 6. current insurance coverage. including goals: The personal financial planner should ask for information about Client’s financial situation. Monitor the financial planning recommendations: Client and the personal financial planner should agree on who will monitor Client’s progress towards Client’s goals. Analyze and evaluate Client’s financial status: The personal financial planner should analyze Client’s information to assess Client’s current situation and determine what client must do to meet Client’s goals. if relevant. understand Client’s time frame for results and discuss. as Client’s life changes. If the planner is in charge of the process. accountants or stockbrokers. how client feel about risk. Client and the planner should mutually define Client’s personal and financial goals. Develop and present financial planning recommendations and/or alternatives: The personal financial planner should offer financial planning recommendations that address Client’s goals. if needed. The planner should also listen to Client’s concerns and revise the recommendations as appropriate. this could include analyzing Client’s assets. Gather client data. 4. based on the information client provide. .15 | P a g e 2. Implement the financial planning recommendations Client and the personal financial planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as Client’s coach. 3.

Success of wealth management services heavily draws on personal interaction with the dedicated relationship manager. • Evolving Client Profile. . • Highly Personalized and Customized Services. • Technical Architecture and Technology Investment. • Intricate Knowledge of Cross-functional domain-By very nature of wealth management. in terms of investment objective.To meet client expectation of personal attention. who takes care of whole investment management lifecycle for bunch of clients on one-to-one basis.As business architecture is still evolving. risk appetite and so on. wealth management services require client specific solution and service offering. mostly being transactional / commoditized in nature. they may face many challenges in formulating winning services offerings meeting the client needs. The following can be some of the key challenges in the present context.Unlike other stream of financial services. time horizon.16 | P a g e Key Challenge Areas While immense business potentiality of this emerging sector is a driving point for most of the firms. • Personal relationship driving the business. No one solution exactly meets the needs of other client. developing any form of generic service model does not support growth of the business.The biggest challenge in providing wealth management service offering is to factor and reckon the evolving nature of client profile. In a situation of highly personalized and customized nature of service offering. taxation and regulatory norms. a proven basis of resilient technical architecture and framework to support the emerging business greatly remains missing. mode of communication in wealth management services tends to be highly personalized. it not just involves matters of plain vanilla finance but has intricate relationship with many elements of domestic / international law. In absence of this framework.

.17 | P a g e any investment commitment towards application development / system implementation would be fraught with severe risk.

.18 | P a g e Objectives of study • • • To understand customers’ perception towards wealth management services and branch banking facilities. a larger and more representative sample may be needed to confirm and generalize the results before they can be applied in practice. and results may not be applicable in a different period of time. . Limitations of study • The convenient sample used in this study may not be representative of the entire population. To understand various investment options available for the investors and the associated risk(s) with investment. The study also presents a sales report on HSBC’s CPP (Card Protection Plan) and observation of customer’s behavior towards branch banking facilities of HSBC bank. and Security Firms. The comparison has been done with four major players in each category. • • The study is limited to the city of Hyderabad. Scope of study The study mainly deals with understanding consumer’s perception towards wealth management service providers and branch banking facilities and it also highlights their post recession thoughts regarding wealth management. Although special attention had been paid to consider the possible influence of various consumer attributes. Further it helps to understand the major investment options for an investor for managing his wealth based on which a comparative analysis of HSBC with other major wealth management firms has been done. viz. The study can provide insights based on the current consumer trends only. Foreign Banks. Indian Banks. To compare various firms offering wealth management services.

After gathering the required information. As this study is done from a banker’s perspective so the target population is chosen as people using banking facilities. Other scaling techniques used in the survey are a five point Likert scale. Data Collection The study is conducted in two phases: In the first phase. In this kind of sampling a sample of population is selected because it is readily available and convenient for the researcher to get the data. HDFC. The AHP (Analytical Hierarchical Process) method has been referred to know the major attributes for selecting a wealth management service provider. Some of the institutions visited include: Standard Chartered. There are many ways for managing wealth viz. Exploratory research was carried out to gain insights about the major players offering the wealth management services and various investment options for the customers. through security firms and few people also manage their wealth by themselves. Majority of the questions are close ended. through banks. the descriptive research was carried out in form a survey in the three shopping malls and the HSBC bank in Hyderabad. ASK Wealth Advisors. Sampling technique: Convenient Sampling has been used to collect the data.19 | P a g e Research Design The present research is a combination of both exploratory and descriptive research. Kotak Mahindra Bank.. interviews with branch managers and relationship managers of major wealth management service providers were conducted to understand the process of wealth management of their respective firms and their major product offerings for wealth management. Sample size: A sample size of 120 has been chosen for the study. and a five point rating scale. Indiabulls . ICICI. Sample Design Target Population: The target population includes people who are using banking facilities.

Table 2(See Appendix) displays the sample distribution. 85 percent are Indians and rest 15 percent are NRIs. 85 percent are males and 15 percent are females. a survey was conducted among 120 customers by administering questionnaires who were using banking facilities. Majority of the respondents (forty six percent) fall under the annual income bracket of Rs 5 to 10 lacs. In the second phase.20 | P a g e Securities. The questionnaire covered both the aspects: wealth management and branch banking (appendix 1). Among all respondents. IIFL etc. .

It is apparent from the figure that majority of the customers are associated with HDFC bank followed by ICICI and HSBC. From the sample surveyed. it was found that almost all the respondents were associated with more than one bank for their banking needs. Other banks which include Axis bank. RBS. shows the composition of customers banking with various banks for their banking needs. Primary banker here means that the bank with which the respondents have their major dealings with. SBH and Kotak Mahindra bank also represents a major part of the population. HDFC bank is followed by HSBC for acting as primary banker for the respondents. Other banks also occupy the same place in serving as a primary banker. 2. The below chart shows that the primary banker for majority of the respondents is HDFC. The chart also shows that SBI and Standard Chartered are the primary banker of very meager (only five percent) of the sample population. The below figure 2.21 | P a g e Analysis and Interpretation 1. .

19 0.00 1.83 4. Attributes for selecting a bank Attributes Brand name Convenient Banking Number of branches Number of ATMs Ambience Quick and quality service Attractive interest rate Working hours Offers Mean score 3.09 0.90 3.27 1. The following table shows the mean score along with variance and standard deviation obtained for the various attributes for selecting a bank.50 1.97 3.67 Standard deviation 1.22 | P a g e 3.23 1.11 1.24 1.29 .25 3.10 Variance 1. Table 3.55 1.23 1.32 4. The respondents were asked to rate the attributes given in the table on a scale of 1 to 5(1 meaning least important to 5 meaning most important).79 1.48 3.62 1.72 3.30 1.53 3.70 1.01 1.62 1.

Majority of the respondents feel that it is better to use wealth management services of the banks rather than the security firms. Attractive interest rate. 76 percent of the respondents feel that it is better to use the wealth management services of the same bank with which they are banking with. etc. The following figure shows that only about half of the respondents were aware of the wealth management services. Ambience and Offers do not play an important role in luring a customer towards a bank. The other major factors for selecting a bank in the order of their importance are: Working hours. The figure below shows the preference of financial institution for using wealth management services. . Brand name. 5. 4. phone banking. Number of branches.23 | P a g e From the above table it is clear that first preference for choosing a bank by any customer depends on the quick and quality service provided by the bank. Moreover. The next major factor for choosing a bank is convenient banking facilities like internet banking. Number of ATMs.

The figure 6 below shows the detailed description of customers’ preference of the banks especially for using wealth management services. who prefer using wealth management services of HSBC bank. .24 | P a g e In providing wealth management services as well HDFC takes the lead as 32 percent of the respondents prefer HDFC bank for using wealth management services. HSBC occupies second position in providing wealth management services as is evident from 28 percent of the respondents.

Table 4.97 3.62 1.66 1.* Number of branches More product offerings Quick and quality service Low brokerage Attractive interest rate Variance 1.22 Attributes Brand name Quality of R.M.66 Standard deviation 1.49 .29 1.48 3.17 1.06 1.24 3.97 4.75 1.83 4.37 1.27 1.20 0. Table 2 given below shows the importance of the attributes given by the respondents for selecting a wealth management service firm.86 1. The following table also shows the mean score along with variance and standard deviation obtained for the various attributes for selecting wealth management service provider.31 3. The respondents were asked to rate the attributes given in the table on a scale of 1 to 5(1 meaning least important to 5 meaning most important).44 0.25 | P a g e 6.03 1. Attributes for choosing a wealth management service firm Mean score 3.

. So still there is a large scope for improvement in terms of service offerings of wealth management firms. 7. Figure 7 below gives the satisfaction levels of the customers regarding their preferred wealth management firms. Low brokerage and Brand name are the other two major factors considered as important for selecting a wealth management firm.26 | P a g e * R. It is important to note that people are not very much concerned about the number of branches when it comes to selecting a wealth management firm. It is interesting to note that majority of the respondents are satisfied with their preferred wealth management firms.M. The figure below shows that 73 percent of respondents are agree that they are satisfied with their referred wealth management firm and only 17 percent strongly agree with this. quick and quality service is the most important criteria followed by quality of relationship managers. means relationship manager It is clear from the above table that again for selecting a wealth management service firm.

When asked about the impact of recession on the customers’ wealth management a mixed response came up. The following figure 9 helps to understand post recession thoughts of the respondents. . The recent global recession impacted all the investors all around the world. Almost half of the sample said there has been a change in their wealth management process after recession and the rest half said the opposite. 9.27 | P a g e 8. It can be due to the conservative approach followed by the wealth management firms.

. People have also turned towards less aggressive investment options for managing their wealth.28 | P a g e From the above figure it is clear that after recession people are more inclined towards the Indian banks as during these Indian banks were least affected by recession.

This is why it is important to consider inflation as a factor in any long-term investment strategy. which is the return after inflation. that is. 321 in 20 years. If the after-tax return on your investment is less than the inflation rate. if there was a 6% inflation rate for the next 20 years. 100 purchase today would cost Rs. For example. For example.29 | P a g e Understanding various Investment options: The money you earn is partly spent and the rest saved for meeting future expenses. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past. if the annual inflation rate is 6%. Inflation is the rate at which the cost of living increases. they won't buy as much today as they did last year. then the investment will need to earn more than 6% to ensure it increases in value. whereby the concept of compounding (as we shall see later) increases . This is called Investment . then your assets have actually decreased in value. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value. By investing early you allow your investments more time to grow. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. Remember to look at an investment's 'real' rate of return. Why should one invest? One needs to invest to: • • • earn return on the idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. a Rs. When to start Investing? The sooner one starts investing the better. The cost of living is simply what it costs to buy the goods and services you need to live.

The three golden rules for all investors are: • Invest early • Invest regularly • Invest for long term and not short term Various options available for investment: • • Physical assets like real estate.a. . Various Short-term financial options available for investment: Broadly speaking. which offers low interest (4%-5% p. aim to maximise returns. money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options: • Savings Bank Account is often the first banking product people use. insurance/provident/pension fund etc. Money market funds usually yield better returns than savings accounts. but lower than bank fixed deposits. gold/jewellery. year after year. debentures etc. Fixed Deposits with banks are for investors with low risk appetite.30 | P a g e your income. • Fixed Deposits with Banks are also referred to as term deposits and minimum investment period for bank FDs is 30 days. making them only marginally better than fixed deposits. • Money Market or Liquid Funds are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and thereby provide easy liquidity.). bonds. and may be considered for 6-12 months investment period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns. and/or Financial assets such as fixed deposits with banks. commodities etc. savings bank account. money market funds are primarily oriented towards protecting your capital and then. Unlike most mutual funds. or securities market related instruments like shares. small saving instruments with post offices. by accumulating the principal and the interest or dividend earned on it.

The interest received is after deduction of taxes. Minimum amount.00. A withdrawal is permissible every year from the seventh financial year of the date of opening of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if any. 3.000/. A deduction of 5% is levied from the principal amount if withdrawn prematurely. Premature withdrawal is permitted if deposit is more than one year old. which can be availed through any post office. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date. 6.000/.00. .(if held Jointly) during a year. which is paid monthly. Maximum amount is Rs. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money. It provides an interest rate of 8% per annum. The rate of interest varies between 6-9% per annum for company FDs. quarterly. The central or state government. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. semi-annually or annually. It has a maturity period of 6 years. • Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. is Rs.000/.000/-. which can be invested.31 | P a g e Various Long-term financial options available for investment: • Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument.(if Single) or Rs. • Public Provident Fund: A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. Tax benefits can be availed for the amount invested and interest accrued is tax-free.and additional investment in multiples of 1. 1. corporations and similar institutions sell bonds. called the Maturity Date. • Company Fixed Deposits: These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly.

as defined in the report. buying in small amounts and diversification. The funds can be invested for at least five years. • Equity Shares: It gives the maximum returns over the long term. NAV is calculated as the value of all the shares held by the fund. to have 10% of their financial assets in alternative investments. debentures etc. Through the primary market (by applying for shares that are offered to the public). investing in equity shares is also perceived to carry a high level of risk. minus expenses. based on 2002 data. showed high net worth individuals. Over the long term. equity shares have offered the maximum return to investors.32 | P a g e • Mutual Funds: These are funds operated by an investment company which raises money from the public and invests in a group of assets (shares. Through the secondary market (by buying shares that are listed on the stock exchanges). 2. Privat equity and hedge funds are also sometimes called alternative investments and the term is a relatively loose one. in accordance with a stated set of objectives. • Alternative Investment: An alternative investment is an investment product other than traditional investments such as stocks. such as money market mutual funds which are short term instruments. which is determined at the end of each trading session. . bonds. As an investment option. It is a substitute for those who are unable to invest directly in equities or debt because of resource. divided by the number of units issued. cash or property. There are two ways in which one can invest in equities1. The term is most commonly used to describe investments in tangible assets such as Art. time or knowledge constraints.). Antiques. Wine. Mutual Funds are usually long term investment vehicle though there some categories of mutual funds. The Merrill Lynch/Cap Gemini Ernst & Young World Wealth Report 2003. Mutual fund units are issued and redeemed by the Fund Management Company based on the fund's net asset value (NAV). Coins or Stamps but may include some financial assets such as commodities. Benefits include professional money management.

the level of risk is also in the same order. You might be saying . Empirically returns across various asset classes show that investment in equity shares give the highest level of returns in the long-term. followed by corporate bonds and deposits and lastly bank deposits and government debt. risk is measured to evaluate the kind of returns you should expect from the investment. But a government can always print more currency and repay its borrowings. For most people who invest in shares there is a good chance that we've heard someone say this before. . there's no risk at all’. Use risk to analyze expected returns while investing. there is a hidden cost (risk). BUT. the higher the risk. Or your return expectations should be based on the level of risk you can bear. lack of funds for a company could result in the company defaulting on a loan repayment. In principle. There is a risk attached.33 | P a g e Every investment has an attached risk ‘Just buy this blue-chip stock. Companies that run into financial trouble could delay your interest payments or even default on paying back your money. one of the main reasons for this probably is – ‘I don't want to take any risk at all. For most people who just put their money away in bonds or deposits. and that cannot be questioned. How? Simply put. there is always some amount of risk. Are these statements true? Is investing in bonds or deposits completely risk-free? Or investing in blue-chip stocks necessarily very low risk? NO. The below figure gives an idea about the risk associated with the investment options discussed. So you will get your money back.how can debt be risky? It is. governments like companies also face the risk of financial problems. but that is only difference in the level of risk. Not surprisingly. Even government debt has some amount of risk. I just want my money safe’. Printing more currency is likely to lead to higher inflation and hence lower real returns on your investment. Agreed that the chances of governments or well-managed companies getting into serious financial troubles are low. Whenever more than one outcome is possible from an investment. Only the level of risk is different. However. the higher the returns that should be required.

commodities. private equity/venture capital and derivatives. . structured products. foreign currencies. In 2006. to seek high returns from real estate opportunities. HNWIs. The figure given below highlights the allocation of assets by the HNWIs by a survey carried by Capgemini and Merril Lynch. overall.” which includes hedge funds.34 | P a g e Figure 10: Risk Vs Return Source: Central Bank of Malaysia April 2007 HNWIs are well-informed of present and approaching economic conditions and quickly reallocate their portfolios to capitalize on market trends. shifted their allocations from “alternative investments.

whilst no single geographical area dominates the group's earnings. and headquartered in London. United Kingdom since 1993.35 | P a g e Figure 11. HNWIs allocation of financial assets Comparison of HSBC with major players Company (HSBC) Profile: About HSBC HSBC Holdings plc is a financial services corporation incorporated in the United Kingdom in 1990 following its name change from The Hongkong and Shanghai Banking Corporation. As of 2010. Hong Kong served as the bank's headquarters until 1992 when it moved to London as a condition of completing the acquisition of Midland Bank and as the handover of Hong Kong's sovereignty approached. Recent acquisitions and expansion in China are returning HSBC to part of its roots. it is both the world's largest banking and financial services group and the world's 8th largest company according to a composite measure by Forbes magazine. Hong Kong still continues to be a significant source of its income. HSBC has an enormous . Today.

New York. After the Mercantile Bank was acquired by The Hongkong and Shanghai Banking Corporation. Mission Statement/Statement of Values Group Business Principles and Values The HSBC Group is committed to five Core Business Principles: . resilience and commitment to its customers have further enabled it to survive through turbulent times and prosper through good times over the past 150 years. and insurance activities around the world.at Flora Fountain. followed by Calcutta(Kolkata). and is a constituent of the FTSE 100 Index and the Hang Seng Index. Paris and Bermuda Stock Exchanges. Europe and the United States. HSBC is listed on the London. investment. Singapore. Hong Kong. The following hundred years were in many ways propitious for the Mercantile Bank. the Mercantile Bank soon opened offices in London. Madras(Chennai). HSBC has been an international bank from its earliest days. The company has a global reach and financial fundamentals matched by few other banking or financial multinationals. HSBC in India is proud to have retained the Group's pioneering streak by being an active partner in the development of the Indian banking industry . Canton(Guangchow) and Shanghai by 1855. Founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China. London and China was founded in Bombay (now Mumbai).even giving India its first ATM way back in 1987. the Head Office of the HSBC Group in India. In 1950 it moved into its new head office building in Mumbai. Starting with an authorised capital of Rs 5 million. HSBC in India The antecedents of the HSBC Group in India can be traced back to October 1853 when the Mercantile Bank of India. the Flora Fountain building became and remains to this day. Hong Kong.36 | P a g e operational base in Asia and significant lending. Colombo and Kandy. The organisation's adaptability. The acquisition in 1959 by The Hongkong and Shanghai Banking Corporation Limited of the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group.

37 | P a g e • • • • • Outstanding customer service. . the promotion of good environmental practice and sustainable development. The exercise of corporate social responsibility through detailed assessments of lending proposals and investments. A diverse team underpinned by a meritocratic approach to recruitment/promotion. • Based on the above principles of HSBC and various investment options as discussed in the earlier section of the report. Strong capital and liquidity. A commitment to complying with the spirit and letter of all laws and regulations wherever it conducts its business. since almost all the firms carry out the same procedure in serving the clients for wealth management so the comparison has been done only taking in to the consideration their major product offerings. a comparison of HSBC with other major players has been done based on their product offerings. Prudent lending policy. HSBC also operates according to certain Key Business Values: • • • • • • • • • • • The highest personal standards of integrity at all levels. Fair and objective employer. The following tables show the comparative analysis of HSBC with the major players in each of the above segments based on their product propositions for wealth management. The appropriate delegation of authority with accountability. Strict expense discipline. Moreover. Fast decisions and implementation. Indian banks and Security firms. Openly esteemed commitment to quality and competence. Putting the team’s interests ahead of the individual's. The comparison has been done under the three major categories: Foreign banks. Effective and efficient operations. and commitment to the welfare and development of each local community. Commitment to truth and fair dealing. Hands-on management at all levels. A minimum of bureaucracy.

38 | P a g e HSBC Vs Foreign Banks HSBC Mutual Funds SIPs Equities Derivatives Commodities Foreign Currency Investment Hedge Funds Real Estate Estate planning Insurance Products Lending DEMAT A/c Endowment policies Bank Deposits Alternate Asset Products Margin Trading ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔‍ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ STANDARD CHARTERED ✔ CITIBANK DEUTSCHE RBS ✔ ✔ ✔ ✔ ✔ .

39 | P a g e Structured Products ETFs Venture Capital Plans Global Investments Bonds Money market funds Tax relief investments ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ HSBC Vs Indian Banks HSBC ICICI HDFC AXIS BANK ✔ ✔ ✔ ✔ ✔ KOTAK MAHINDR A BANK ✔ ✔ ✔ Mutual Funds SIPs Equities Derivatives Commoditi es Foreign Currency Investment Hedge Funds Real Estate Estate planning ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ .

HSBC Vs Security Firms HSBC Mutual ✔ RELIGARE ✔ ANAND RATHI ✔ MOTILAL OSWAL ✔ INDIA INFOLINE ✔ .40 | P a g e Insurance Products Lending DEMAT A/c Endowment policies Bank Deposits Alternate Asset Products Margin Trading Structured Products ETFs Venture Capital Plans Global Investment s Bonds Money market funds Tax relief investment s ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Table 3.

41 | P a g e Funds SIPs Equities Derivatives Commoditie s Foreign Currency Investment Hedge Funds Real Estate Estate planning Insurance Products Lending DEMAT A/c Endowment policies Bank Deposits Alternate Asset Products Margin Trading Structured Products ETFs Venture Capital Plans Global Investments Bonds ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ .

Access to UK and US capital markets for future capital raising. • • • • The bank is well capitalised. February 2008. adds pressure to an • . Asia and South America helps to spread risk and offers significant economies of scale. • • Weaknesses • The bank was involved with sub-prime markets in the US and has had to write off large figures lent to high-risk borrowers. Despite falls in the UK interest rate. Forbes) and most profitable banking corporation. Despite rebranding relatively recently (1999). The bank’s global presence in Europe. It is well known in banking circles for its conservative and risk-averse approach in its business operations and this has enabled it to perform relatively well against other banks in recent economic events. London & New York listing: Prestige and visibility. putting it in a good position to take advantage of future growth in those economies. This may be perceived negatively by borrowers and potential borrowers. Highest international presence: 128 million customers worldwide. HSBC has increased its mortgage rates. the HSBC brand has become wellestablished and is considered particularly valuable within the industry. • The bank has a strong presence in emerging markets.42 | P a g e Money market funds Tax relief investments SWOT Analysis of HSBC: Strengths • World's largest (based on a composite score. HSBC was named the world's most valuable banking brand by The Banker magazine.

there is little likelihood that the bank will recoup all its losses if owners default. In the UK this is coupled with increases in living costs resulting in less money being saved. Threats • Trust in banks has decreased due to financial losses suffered by investors. helping to increase resources for lending. the embarrassing effect on the group's image did not go unnoticed. HSBC’s branding emphasises its global presence. who may be more inclined to invest elsewhere. and this may be seen negatively by some customers in its implication of homogenisation and lack of personalisation. . (The Guardian. in which it has purchased a stake to continue its Asian expansion despite challenging economic times. • HSBC’s generally strong position presents the opportunity to outperform competitors during the economic downturn and to build a reputation for being one of the safer banks for depositors. Opportunities • • HSBC’s high level of capitalisation places it in a strong position to acquire assets. • • Customers complaining about the hidden charges in the transactions. • Non-Resident Indians represent a large asset to foreign banks. HSBC also has adequate capital to purchase stronger banks such as Bank Ekonomi in Indonesia. Currently the NRI population all over the world is about more than 24 millions. So this segment of population can also be targeted.43 | P a g e already depressed housing market and could ultimately lead to more defaulting as borrowers struggle with higher repayments. Financial losses affecting banks and investors on a global scale have resulted in less credit being available to customers. • HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. • • The falling property market has created a rise in numbers of homeowners with negative equity. • Increased intensity of competition from local and global players. April 2008). If a property is worth less than was borrowed to finance its purchase. Although the consequences turned out to be small.

In branding. the important features to be addressed are familiarity. for various business considerations of the service provider firm. Since HSBC is known for its conservative approach so the limited product offerings for its wealth management services is justified. differentiation and emotional attachment.Quality of service level provided by the bank would the key determinant of growth and success in client acquisition.Branding has always been important in attracting and retaining clients. success of the firm would be greatly dependent on the skills. In a sense. So by the comparative analysis done its limited product offerings is justified. But looking at the allocation of assets as highlighted by the capegemnini report in figure 11. However. service offering could be developed in the form of partnership with the client based on trust and integrity. drive and enthusiasm of relationship managers (to take an extra mile).As relationship manager remains the face of the firm to a client. Awareness. brand is an important criterion for selecting a wealth management firm.An important point that emerged from the survey is the lack of awareness about wealth management.44 | P a g e Analysis and recommendations: 1. client satisfaction and client retention aspects. now likely to get more attention going forward. Quality of Service Level . 3. 2. So HSBC should take the lead in creating . Universal service offering. From the survey conducted also. a client would expect to deal with a single firm to get complete range of investment management services. 4. 5.To meet the client needs in holistic manner. product and service offering range of the firm should be wide enough to cover the investment spectrum across its lifecycle. positioning. Investment in People Processes. 6. So HSBC should also consider various alternative investments for wealth management. it can be found that HNWIs are also favoring the alternative investment. while bonding and dealing with any of client issues. In an ideal situation. in many situations it may not be a viable proposition to offer those services. where the relationship manager remains highly responsive to client sensitivities and expectations. Branding.

Number of branches.45 | P a g e awareness about wealth management. Thus for attracting the customers bank can come up with more innovative products which can take care of customers’ needs in more holistic manner. Working hours. Out of more than eighty leads generated for the CPP only five to six got converted in to final deal. Credit card department. 10. Sales of CPP (Card Protection Plan). So as long as people are getting quality service from the bank it is not necessary to consider expansion in terms on number of branches. However.From the survey it was found that number of branches of a firm is not an important criterion for selecting a wealth management firm. This would help the bank in acquiring more clients. for selecting a bank the customers feel that number of branches is one of the important criteria.. It is not a major criterion in choosing a wealth management firm but when it comes to selecting a bank for it is one of the important factors. more customers would come personally to the bank rather than sending their assistant. This shows that today customers have become more prudent. 9.Although this plan starts just for an annual charge of Rs 995. 8. This would probably help in cross selling. 10 am to 4 pm can be increased. As if the bank is operating after the office hours.e. . So the current working hours of the bank i. So the bank may consider expanding its branch based on the cost benefit feasibility for the convenience of the customers. 7. the customers were disgruntled by the credit card department and phone banking facilities of the bank.Though the satisfaction levels of the customers regarding the bank seemed fairly good. still the customers were not showing an interest in opting for this plan despite it’s added benefits. So care must be taken to improve the facilities in these departments immediately as many of the clients were of the opinion of terminating their entire dealings with HSBC entirely due to these two basic reasons.

. Kindly rate the following on a scale of 1 to 5 (1 being least important to 5 being most important) for your preference of selecting a bank.... From the above mentioned banks.... A B C D E F G H I Attributes Brand name Convenient banking facilities(like phone banking.. Other (Please Specify).etc) Number of branches Number of ATMs Ambience Quick and quality service Attractive rate of interest Working hours Offers Rating ( 1-5) 4...... Andhra Bank in more than one bank. A. If you have an account otherwise move to Question no.. your primary banker is..... SBI H. 2.. 3). otherwise go to Question no. HSBC F... 3... ICICI G. HDFC E.. 11....46 | P a g e APPENDIX Questionnaire Age: Gender: Male Female Nationality: Indian NRI 1.. Which bank(s) you are currently banking with? (You can tick more than one if applicable)...internet banking... please proceed to next question......... Yes No .. Standard Chartered D...... proceed to next question B.... Are you aware of the Wealth Management services? If yes. Citi Bank C....

. Which financial institution do you prefer for managing your wealth? Please put a tick or specify.. ... “You are satisfied with the wealth management services of your preferred firm........ A.. Agree C.. Security firms-Motilal Oswal..... Anand Rathi. HDFC. ICICI.. Disagree E...... Has there been a change in your approach towards wealth management after recession? Yes No 10. Other (Specify)... Strongly Disagree 9.... 6....... Tick the following (whichever is/are applicable) that represents your post recession thought regarding wealth management...47 | P a g e 5.. Banks-Citi Bank.. HSBC... Religare. Kindly rate the following on a scale of 1 to 5 (1 being least important to 5 being most important) for your preference of choosing a firm for managing your wealth.. B. Other (specify)....... Strongly Agree B. Neither Agree nor Disagree D.” A. Do you prefer using the Wealth Management services of the same bank you are banking with? Yes No 7. A B C D E F G Attributes Brand name Quality of Relationship manager Number of branches More product offerings Quick and Quality service Low brokerage or service charge High interest rate Rating ( 1-5) 8..

.............. 11......................... ................ Less aggressive investment E.. NAME (optional).. Other (Please Specify)............................................................ 50 lacs or more B.............................................................. 25 to 50 lacs 12........................................48 | P a g e A......... Less than 5 lacs C......... 5 to 10 lacs D..... Table 1........ Please give your valuable suggestions for further improving the services of your bank(s) or the security firm(s)....... 10 to 25 lacs E............... Sample distribution ....... More inclined towards security firms D.......................M Convenient banking More products Offers Low brokerage Attractive interest Number of branches Number of ATMs Quick and quality service Working hours Products/services Quality of service Table 2.... Mobile No (optional)........... Criteria and Sub-criteria Criteria Image Sub...... Please tick the annual income bracket (in Rs) that you fit into? A..... More inclined towards Indian Banks B.. Cautious in selecting relationship manager F........... More inclined towards foreign banks C...criteria Brand name Ambience Quality of R.............................. ..............

C. & Spencer. International Journal of Bank Marketing. 13(7). 9-15. Malhotra. (1990). W.. 2.49 | P a g e No. Meziani. (1994). Marketing Research : An applied orientation . Saaty. Graddy. L. L. Pittsburgh: RWS Publications.. H.. T. 3. 5. (2000). Naresh K. pp. (1992). & White. International Journal of Bank Marketing. F. & Kucukemiroglu. E. 12(1). Bank and product selection: Hong Kong. 3-16.. (1990).. A. Leonard. Fundamentals of decision making and priority theory with the analytic hierarchy process. 10(1). Mathematical and Computer Modelling. Using the analytic hierarchy process to select a financial instrument for a foreign investment. 77-82. B. of responden ts 102 18 5 38 6 6 5 102 18 % of responde nts 85 15 8 64 0 10 8 85 15 Gender Male Female 20-30 30-40 40-50 50-60 60 or more Indian NRI Age(in years) Nationality Annual income(in Rs) <5 lacs 5 to 10 lacs 10 to 25 lacs 25 to 50 lacs >50 lacs 28 56 20 14 2 23 46 17 12 2 Bibliography 1. & Rezvani. Kaynak. S. Customer Preferences for Financial Services: An Analysis. 4. Managing Commercial Banks. 1-478. Boyd. O. 6. M.

50 | P a g e 7. Capgemini and Merrill Lynch wealth reports. Economic Times . PWC reports on wealth management. 2009 10. India attractive market for wealth management: Barclays. 2007 8. Wealth management systems survey 9.

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