Targeting Non-Resident Indians in Wealth Management

Targeting NRIs in Wealth Management is Datamonitor's latest insight report on what is emerging as a ready-made wealth management segment globally. Building on the resources and expertise of Datamonitor's Global Wealth Service team, the report is rich in data and analysis, and provides in-depth and impartial market assessment, and competitor intelligence.

• The report looks at the growing trend among financial institutions in targeting these individuals with wealth management products and services.
• Datamonitor's Global Expatriate Study sizes the Indian population by country of domicile and provides a breakdown of wealth level.
• The report analyses competitive dynamics in the NRI space across the globe.

The largest NRI populations of the countries studied in the AP region are in Singapore and Australia, with 114,400 and 122,200 respectively. Australia is essentially a country of immigrants and it is therefore not surprising that it is home to large numbers of many different nationalities.

The concern over understanding tax implications associated with property investment was considered very or fairly important by an average of 77% of expatriate respondents across the UK, the UAE, Hong Kong and Singapore. Respondents in the UK and the UAE found it of most concern with 80% stating it was very or fairly important.

Like any potential wealth management client segment, NRIs have the potential to be demanding. They have with complex and differentiated needs related to the fact that they are outside of their country of origin. These complex needs present wealth managers with opportunities to target them with specific services.

• This report is an indispensable guide to those looking to target non-resident Indians (NRIs) anywhere in the world.
• With clear exposition of market opportunities and threats, the report is an effective aid for all parties in planning competitive strategy.
• Find out how large the NRI population is globally and its breakdown by wealth level.

CHAPTER 1 INTRODUCTION

What is this report about?

Who is the target reader?

CHAPTER 2 THE MARKET OPPORTUNITY

A brief history of Indian migration

There are three key reasons why financial instiitutions should consider targeting the NRI population

They have differentiated needs

Remittance services

Offshore investment

Other expatriate needs

NRI populations around the globe are large

The Middle East is attracting Indian workers in their millions

North America offers skilled work in banking and tech sectors

Europe and the UK in particular have been long-time destinations for Indians

Indian-born populations in Asia-Pacific are sizeable too

There are significant proportions of wealthy individuals among their number

Overseas Indians tend to have higher average income than local residents

The number of wealthy Indians around the world

CHAPTER 3 COMPETITIVE DYNAMICS

There are four ways in which financial institutions are targeting NRIs around the globe

Leveraging existing customer bases

The Indian banks all look to leverage their existing customer bases

Partnerships between foreign and Indian firms

Lloyds TSB and ICICI spotted an opportunity in the UK market

Indian bank Indusind is looking to tie up with several overseas banks in an effort to target NRIs

Targeted wealth management products and services

SG Private Bank is building a regional business targeting NRIs

Sponsorship and promotion

Citi NRI chooses sponsorship to raise its profile in the NRI community

Standard Chartered has also been linking its NRI customers with events

CHAPTER 4 APPENDIX

Data

Definitions

AAGR

CAGR

Gini index

Liquid assets

Liquid asset bands

Research methodology

The Global Wealth Model

The UK sub model

Asia-Pacific sub model

Forecasting methodology

Datamonitor's wealth numbers compared with others' numbers

Bespoke Wealth Market Sizing

Further reading

Datamonitor Asia-Pacific Wealth Reports

Datamonitor Asia-Pacific Insight Reports

Datamonitor Global Wealth Service: Competitor Tracking

Datamonitor Financial Services Consulting

Asia-Pacific contacts

List of Tables

Table 1: Value of NRI deposits by type, 1999-2005

Table 2: Foreign direct investment into India by country, 2002-2005

Table 3: Stocks and flows of NRIs into countries around the world, 2005

Table 4: Proportion of NRI populations that are affluent, 2005

Table 5: Wealth markets that have been modeled using the Global Wealth Model

List of Figures

Figure 1: NRI deposits have been growing in value rapidly in recent years and were worth almost USD33bn as at March 2005

Figure 2: Money transmission is clearly an important service offering for expatriates around the world

Figure 3: Foreign investment flows into India have increased markedly since 2004, with Mauritius being the largest contributor

Figure 4: Investment advisory services offered by an offshore bank are considered important

Figure 5: Understanding of income tax position is a large concern for expatriates

Figure 6: The tax or legal implications of buying property abroad are of concern to expatriates

Figure 7: In general all investment services were deemed to be useful, but portfolio management, property investment and collective investments were the most popular

Figure 8: Tax planning and advice were considered the most important advisory and planning services that an offshore bank could provide to expatriates

Figure 9: Expatriates were less interested in insurance products. Private health insurance was considered the most important for an offshore bank to provide

Figure 10: Of the 20 countries studied by Datamonitor, the Middle Eastern countries were home to the largest number of NRIs

Figure 11: The UAE and Saudi Arabia are home to 2.6 million NRIs between them, with many more arriving each year

Figure 12: The US is home to one of the world's largest Indian populations, and saw more than 70,000 arrive in 2005

Figure 13: Europe - and in particular the UK - is home to a large number of NRIs, with more than 30,000 arriving each year

Figure 14: The Indian born population around Asia-Pacific is substantial, although many have been outside of India too long to be considered NRIs

Figure 15: British Asians are more likely to be self-employed than any other UK ethnic group

Figure 16: Large proportions of the NRI populations in each country are either mass affluent of high net worth

Figure 17: The proportion of NRIs that are considered affluent compared to the domestic population is particularly favorable in Thailand, Singapore, Indonesia, China and Ireland.

Figure 18: A selection of the domestic Indian banks offering NRI services