Pune: Federal Bank has announced the launch of its wealth management platform and the inauguration of its first Wealth Hub, marking the next phase of the Bank’s strategic expansion in the wealth management segment.
With the introduction of the Wealth Hub, Federal Bank aims to deepen its presence in the rapidly growing affluent and ultra-high-net-worth individual (UHNI) customer segment.
Building on over 90 years of banking legacy and customer trust, Federal Bank said the new Wealth Hub initiative will strengthen its customer-centric approach while providing in-depth market research and a broad range of investment products aligned with clients’ individual risk profiles.
Through the Wealth Hub, the bank will offer a curated suite of investment solutions that includes fixed income products, equities, mutual funds, alternative investments, and opportunities through GIFT City.
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Dedicated Wealth Hub Network Planned Across Key Locations
Federal Bank plans to establish multiple Wealth Hub centres across key locations to support its wealth management expansion strategy.
These specialised Wealth Hub facilities will provide clients with a private and premium environment where they can engage with relationship managers and portfolio counsellors.
At each Wealth Hub, customers will be able to review investment strategies, access research insights across asset classes, and receive advisory services through both in-person and virtual consultations.
The initiative is designed to provide a more personalised and sophisticated wealth management experience through the Wealth Hub framework.
Restructuring Arrangement with Equirus
As part of the bank’s strategic shift and the launch of its own Wealth Hub-driven wealth platform, the existing arrangement between Federal Bank and Equirus Capital Private Limited for wealth management services will be restructured.
Federal Bank clarified that customers who currently avail wealth management services through the arrangement with Equirus will continue to receive services without disruption under the existing framework while the new Wealth Hub platform is rolled out.
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Leadership for the Wealth Hub Business
The wealth management business under the Wealth Hub initiative will be led by Virendra Somwanshi, who brings extensive experience in building and scaling wealth management franchises within the banking sector.
Federal Bank also confirmed that it continues to hold an 8.69% stake in Equirus, and both institutions will continue to collaborate to serve the investment requirements of UHNI customers.
Through this collaboration, select investment products and services from the Equirus wealth management suite will continue to be offered alongside the bank’s Wealth Hub offerings.
K V S Manian, MD & CEO of Federal Bank, said: “The Equirus partnership enabled the Bank to establish a strong foundation in the wealth management business. 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.”
Ajay Garg, MD of 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.
Federal Bank has been a valued partner and we are keen to support their desire to broaden their wealth presence and working closely with them on technology and business build out to facilitate the same.”
Through the launch of its wealth management platform and the rollout of the Wealth Hub model, Federal Bank is positioning itself to build a stronger in-house wealth advisory franchise while continuing strategic collaboration with Equirus to address the investment needs of affluent and UHNI customers.
