Analysing the investment factors of HNIs and revenue generation to financial institute

Abstract

With the economy in India showcasing strong growth with the favourable policy implementations, the number of HNIs & Ultra-HNIs is growing at very fast pace in India. This has resulted in huge opportunities for banks and other financial institutions to retain & acquire these highly profitable customers for sustainable growth. HNI portfolios continue to grow more diversified over the long term, spread across international boundaries and asset classes, their investments become increasingly mobile. A needs-based approach provides advisors with the right products and services to offer their investors to achieve their investment goals and enjoy improved client satisfaction.

The main objective of this paper is deduced below with the objective being to create an actionable strategy for the financial sector in channelling the resources for optimal profitability. In the process the emphasis will lie in identifying the demographics of the High Net Worth individuals in India, to gauge the preferences of HNI with respect to brands, leisure activities and    Investments and find out the pattern in investment of HNIs. The approach adopted in this research is quantitative in nature that includes in depth survey of 300 samples (HNIs) through a questionnaire. The data captured is analyzed using statistical tools like SAS, SPSS in order to create an inferential decision making. The researcher has decided to incorporate equation based models like regression/ logistic regression as well as algorithm based decision tree to capture the nonlinearities. The pattern recognition through segmentation and profiling has also been incorporated to capture the homogeneous characteristics of the most profitable segment.