Federal Bank has launched a new wealth management platform and opened its first dedicated Wealth Hub in Mumbai. This shows that the bank is focussing on serving affluent and ultra-high-net-worth individual (UHNI) clients as competition in India’s wealth management market increases.
The launch marks the next phase of Federal Bank’s expansion in wealth management. The bank plans to build its own wealth management network while continuing to work with partners. The new platform will give clients access to market research, portfolio advisory services, and various investment products based on different risk levels.
The investment options offered through the platform include fixed income products, equities, mutual funds, and alternative assets. Clients will also get opportunities to invest through GIFT City, which allows access to offshore investment options. This reflects the growing interest among Indian wealthy investors in diversified and international investments.
Along with launching the platform, Federal Bank plans to open more Wealth Hubs in major cities. These hubs will provide a private advisory space where clients can meet relationship managers and portfolio advisors. Clients will be able to discuss investment strategies, review portfolios, and access research insights. These services will be available through both in-person meetings and virtual consultations.
As part of this expansion, the bank will also restructure its existing wealth management partnership with Equirus Capital. However, customers who are currently receiving wealth management services through Equirus will continue to receive these services without any disruption.
Federal Bank currently holds an 8.69% stake in Equirus. The bank said both organisations will continue to work together in serving UHNI clients through selected products and services available on the Equirus wealth platform.
Federal Bank and Equirus will continue to collaborate to fulfil the investment needs of UHNI category customers by offering select products and services from the Equirus wealth management suite, per the statement. The Bank’s wealth management business will be led by Virendra Somwanshi, who brings extensive experience in building and scaling wealth management franchises within the banking sector, it added.
This expansion reflects a larger trend in the Indian banking sector. Many banks are strengthening their wealth management services as the number of wealthy investors in India continues to grow. Banks are building dedicated platforms and advisory networks to compete with global private banks, independent wealth firms, and digital investment platforms.
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