Federal Bank has launched a wealth management platform, ‘Fed Wealth’, strengthening its bet on the bank’s strategic expansion in the wealth management business. The private lender also inaugurated its first Wealth Hub in Kochi, which will offer investment solutions including fixed income, equities, mutual funds, alternatives and opportunities through GIFT City.
Federal Bank has restructured its existing arrangement with Equirus Capital to improve the product offerings and service architecture for affluent and ultra-high-net-worth clients.
“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,” KVS Manian, MD & CEO, Federal Bank said in a statement.
Federal Bank holds an 8.69% stake in Equirus.The bank said it will continue to collaborate with Equirus to meet the investment needs of UHNI customers by offering select products and services from the Equirus wealth management suite. Customers, who are currently avail wealth management services through the existing arrangement with Equirus will continue to do so without disruption under the current framework.
Ajay Garg, MD 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.”
Virendra Somwanshi will lead Federal Bank’s wealth management business. He is currently Executive Vice President & Head of Wealth & Banca at Federal Bank and has close to three decades of experience in private wealth, retail banking and financial services.
Federal Bank will set up Wealth Hubs across key locations to offer clients a private, premium environment to engage with relationship managers and portfolio counsellors, review investment strategies and access research insights across asset classes through both in-person and virtual consultations.
Federal Bank’s move comes at a time when global firms and domestic private banks are stepping up their focus on the wealth management business in India to the country’s exploding ultra rich population. Axis Bank, for instance, was reportedly hiring over 50 wealth managers for its private banking division, Burgundy Private. Global lenders such as HSBC Holdings and Standard Chartered Bank, along with domestic firms including Kotak Mahindra Bank have also been expanding their wealth management business with product suites that are dedicated wealth management hubs in cities with affluent bases.
