KapilNarang, Chief Operating Officer, Ameriprise India Advisory Services talks to Cafemutual about the company’s model, its offerings and future plans.
Please explain the Ameriprise model. What need gap in the Indian market you seek to fulfill? How exactly do you differ from other financial planners/distributors?
We follow a transformational approach towards personal finance in India, one which is significantly different from current industry standards. Our Dream > Plan > Track> approach to financial planning helps align our solutions to clients’ personal and financial goals. Our value proposition for Indian audienceentails offering acomprehensive, personalized and long termfinancial planning advice based on in-depth understanding of each client’s dreams and goals.
We also help the client implement his/her financial plan by suggesting products across all major asset classes aimed at achieving his or her specific goals. These include investment products such as mutual funds, portfolio management service, structured products, private equity, corporate fixed deposits, bonds; protection products such as life and general insurance and other services such as loans and real estate advisory. There is also a strong focus on tracking the progress along the way, through different life stages of the client.
What is your modus operandi to reach out to people, given the lack of financial planning awareness in India?
There is low awareness about financial planning among Indian consumers as it is still a relatively new concept in India. Investors have yet to understand the benefits of taking long term financial planning approach while managing their finances and making investments.
However, over the last year, we have seen a very positive consumer trend evolving with more and more consumers showing preference towards making investments aligned to their goals, and seeking professional advice to do so. We do get large percentage of our business due to client referrals. As part of our marketing initiative, we conduct educative workshops and seminars in corporate houses besides participating in various thought leadership media opportunities. It also helps us to increase awareness about financial planning.
What is the USP of your financial planning program? On which all basis you charge clients in India? And how easy or difficult is it to convince them to pay fee?
We’ve three distinct offerings for our clients. With each of these offerings, we support our clients with highly trained financial advisors, access to experienced and qualified investment specialists, and the reach to over 100 financial services firms to meet client’sneeds and requirements.
a) Ameriprise Empower: It is a comprehensive financial planning offering focused at understanding dreams and goals of a client, taking a holistic view of his or her financial situation, and providing personalized advice to help client meet his/her needs while fostering a long-term relationship with a financialadvisor. We charge an annual fee of Rs 12,500 (excluding taxes)for this service.
b) Ameriprise Envision: This is a goal-based financial planning service that aims to help the client achieve a specific dream such as planning for child’s education, buying a dream home, etc., while working closely with a financial advisor. We charge an annual fee of Rs 5,000 (excluding taxes) for this service.
c) Ameriprise Explore: This includes solutions from a wide array of products that address investment and protection needs of a client.
When we launched these services, we did prepare ourselves to get resistance from clients on paying fee for comprehensive financial planning service. However, over the last year, we have received very encouraging response with most of the clients giving us references and endorsing us publicly at various platforms. This reinstates our belief that Indian consumer is willing to pay for services if they see value in it.
Do you distribute other products as well or solely focuses on financial planning?
Our core offering is Ameriprise Empower TM, comprehensive financial planning service which includes preparation of the financial plan and also itsimplementation by helping clients buy products recommended in the plan.
Are you targeting any particular segment like HNIs, middle/upper income families etc.?
Our target audience includes working professionals with annual income of Rs20-60 lacs,present in locations where we have our offices – Delhi NCR, Mumbai, Pune and Bangalore.
How has been the response from Indian families so far? How many families have enrolled for the financial planning?
We have received tremendous response from Indian consumers. We are delighted that our customized and unique value proposition- Dream > Plan > Track >has resonated well with them.
Clients are quite impressed with our due diligence process, in particular. We have a very healthy client referral trend. It continues to validate the fact that once a client experiences our services, he or she is willing to refer us to his or her friends.
India is an important market for us and offers tremendous
business opportunity. We are confident about our growth here due to our
unmatchable financial planning approach and advisory services.
