HDFC Securities aims to harness growth of HNI over next 5-10 years: Puneeth Bekal

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Founded in 2000, HDFC Securities is a prominent subsidiary of HDFC Bank and stands as one of India’s leading stock broking and financial services firms. The firm recently launched HDFC Tru specifically for the needs of high-net-worth individuals and ultra-high-net-worth individuals.

In an exclusive AG talk interaction with Adgully, Puneeth Bekal, EVP & CMO, HDFC Securities, discusses the strategic vision behind HDFC Tru and how it addresses the specific needs of family offices and wealthy investors. Bekal highlights the brand’s approach to personalized advisory, its use of technology for data-driven insights, and plans to expand into Tier-2 and Tier-3 cities. He also shares insights on adapting wealth advisory services to align with shifting consumer behaviour and rising financial literacy, especially among the affluent class, as well as observations on market sentiment during the festive season, and more.

What inspired HDFC Securities to launch HDFC Tru, and how does it address the specific needs of family offices and wealthy investors?

According to the Hurun India Rich List 2024, India is emerging as the engine of wealth creation in Asia. The list notably emphasizes the rise in high-net-worth individuals from various states, including Haryana, Uttar Pradesh, and Rajasthan, moving beyond traditional economic centres. Maharashtra tops the list, while Delhi and Gujarat also experience significant growth.

At HDFC Securities, we aim to harness this growth over the next five to ten years with the launch of HDFC Tru, our bespoke investment advisory services tailored to the needs of high-net-worth individuals and ultra-high-net-worth individuals. With decades of experience and a client-first approach, we aim to guide our clients towards financial prosperity with personalized solutions that align with their unique goals.

In addressing the specific needs of family offices and affluent investors, our primary differentiator is the way we tailor our solutions to meet each client’s objectives. Our approach is founded on two key pillars: Honesty and Expertise. By “Honesty”, we mean that our primary goal is to align with our clients’ objectives based on their individual profiles. By “Expertise”, we refer to our ability to leverage in-house research capabilities which have been developed over nearly two and a half decades of our existence.

Furthermore, India is performing exceptionally well and is growing at around 7% in terms of GDP. The affluent class is also accumulating significant wealth, in fact, outperforming the broader Indian economy. Therefore, we see a huge opportunity here, and we do not anticipate any stagnation over the next 20 years.

What marketing strategies are you implementing to create awareness and drive engagement for HDFC Tru, especially within the competitive wealth management space?

Our offering is a highly specialized service with clear segmentation; the minimum net worth required for advising high-net-worth individuals (HNI) and ultra-high-net-worth individuals (UHNI) is set at over Rs 50 crore, while for family offices and corporate treasuries, this threshold is even higher.

We believe that our existing customer base of over 5.7 million serves as our most significant brand ambassadors. To this end, we are committed to upholding our brand positioning of honesty and expertise. Every engagement with consumer reflects these values curated specifically address their queries such as succession planning, financial planning, investment strategies, tax planning, retirement planning, and more. Our website also reflects how we are creating a more personalized and client-first experience to address the unique financial needs of everyone.

Another critical aspect of our strategy is our people. We have recruited top talent from the wealth management sector, each with over 20 years of experience working with leading brands in the industry. The caliber of professionals we bring on board, combined with the partnerships we plan to establish in the coming months, will distinguish us in the market. While the wealth management space has significantly matured outside India, it is still in its growth phase here. Given this context, we see substantial potential to enhance our human resources mandate as well.

As Tier-2 and Tier-3 cities experience a surge in wealth, how does HDFC Tru plan to tap into these markets while maintaining its premium positioning?

India’s Tier 2 and Tier 3 locations are undergoing a significant transformation, emerging as vital centers for economic growth and financial services. This shift is driven by demographic changes, increased digital penetration, and evolving consumer behaviors. The affluence of the middle class in these areas is improving, fueling demand for enhanced financial services and expanding market potential.

HDFC Securities operates over 250 physical branches and emphasizes a strong digital presence, making us a truly “phygital” brand. We intend to leverage this extensive network across the country by implementing community engagement initiatives to raise awareness about our offerings. Additionally, we will utilize technology to connect with both potential and existing clients.

Maintaining the highest standards of transparency is a core focus for us. We aim to showcase local investment opportunities in businesses and real estate that resonate with audiences in these markets. Importantly, we will develop and deploy educational resources that highlight the long-term benefits of wealth management, including retirement planning and legacy building.

Above all, we are committed to adhering to regulatory standards and promoting ethical investment practices, as trust is at the heart of everything we do.

How does HDFC Securities leverage technology to provide personalized and data-driven insights for its clients, and what role does AI play in this process?

Research is fundamental to everything we do for our clients. With this foundation, we have invested in technology to deliver personalized, data-driven insights through advanced tools and artificial intelligence (AI). It is noteworthy that we have developed a wealth management software that offers clients instant access to their investments, including market valuations and allocations.

Furthermore, the organization employs advanced data analytics and machine learning algorithms to provide real-time market insights, trend analysis, and predictive modelling. Beyond research-backed advisory, we have integrated AI and machine learning across our investment platforms, InvestRight and HDFC SKY, empowering investors to make informed decisions based on data insights. This approach significantly enhances their overall investment experience.

Specifically regarding HDFC TRU, while AI plays a role in data analytics, the key driver of this high-level specialized service is our relationship with customers. As its tagline suggests, HDFC TRU is centred around honesty and expertise; to us, this translates into trust and research-backed recommendations.

With shifting consumer behaviour and growing financial literacy, especially among the affluent class, how are you adapting your wealth advisory services to align with emerging trends and client expectations?

At HDFC TRU, we are simplifying our approach by emphasizing personal advisory services. We are clearly transitioning to a customer-centric model, focusing on holistic, goals-based advisory frameworks. This approach prioritizes understanding our clients’ broader life goals – such as retirement planning, education funding, and lifestyle maintenance – rather than merely providing investment advice.

Delving into the most significant change that we are witnessing is the financialization of assets. Investors are increasingly diversifying their portfolios beyond traditional avenues like real estate and gold. Now, clients are looking to invest in real estate through financial products such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Similarly, in the realm of gold investment, the focus has expanded beyond physical gold to include digital gold, gold mutual funds, and gold exchange-traded funds (ETFs), among other options. Through HDFC TRU, we offer a comprehensive suite of financial products to meet these evolving needs.

Furthermore, HDFC TRU is committed to helping individuals participate in India's growth story. We firmly believe that India will continue to thrive and that the dream of becoming a $5 trillion or $7 trillion economy will be realized within the next decade.

In addition to investment opportunities within India, HDFC TRU also offers research-backed advisory services for global investments, particularly in the US market.

Lastly, under the HDFC TRU umbrella, we even provide affluent investors with unique opportunities to engage in unlisted securities. Our advisory services cover wealth generation opportunities across various segments, including startups, bonds, and unlisted equities. Most importantly, we leverage technology to provide accurate information in one convenient location, significantly reducing our clients’ hassles.

What are your observations on the overall consumer and market sentiment during this festive season, and how has it influenced your core marketing strategy and campaign planning?

The overall consumer sentiment during the festive season has consistently presented an opportunity for financial service providers to connect with their audience meaningfully. At HDFC Securities, we are adapting our marketing strategies to focus on digital engagement, educational content, and personalized experiences. Our aim is to enhance customer relationships while driving growth in a competitive landscape.

To this end, we had recently launched our campaign, MoneyFest’24. This festive initiative is designed to help investors achieve their financial goals during the auspicious Diwali season. The campaign emphasizes a holistic approach to investment, aligning with the festive spirit of prosperity and growth.

Through MoneyFest, we offer curated advisory across stocks, mutual funds, and exchange-traded funds (ETFs) tailored for the upcoming financial year, encouraging investors to take proactive steps toward their financial aspirations. Additionally, MoneyFest promotes various investment products focused on driving wealth creation by highlighting potential returns and suitability for different risk appetites. We also offer zero brokerage on all ETF transactions, making it even more accessible for investors to diversify their portfolios.

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