Targeting Non-Resident Indians in Wealth Management

Table of Contents

• 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