The driving sources behind India's growth narrative: HNIs as catalysts in the economic transformation

A report released in February 2024 by Goldman Sachs on ‘Affluent India’ explores the changing dynamism and exponential growth of India as an economic powerhouse. The report highlights a growth of 12% CAGR between 2019 to 2023 of the affluent class in India. Their numbers have surged from 24 million in 2015 to 60 million in 2023, with projections to reach 100 million by 2027. This trend is also visible when we see the increase in the total number of credit cards issued in India, which has doubled over the past four years, with spending on credit cards rising 2.5 times.

This rapid growth reflects India's dynamic economic landscape. It has risen to the position of the fifth-largest economy in the world a $3.4 trillion GDP with the Central Bank forecasting a 7% growth rate in FY25. This economic ascent is driven by a resilient services sector, significant foreign direct investment, and the emergence of India as a global manufacturing hub.

The emergence of new economic frontiers is spurring the (significant growth) of an affluent consumer cohort or High Net-worth Individuals (HNIs). Once limited to traditional business magnates and old money, the next phase of growth in the affluent segment in India will be driven by diverse group of tech entrepreneurs, startup founders, social media influencers, and internet millionaires. –

This burgeoning affluent class is characterised by a penchant for exclusivity and discretionary spending, which includes concierge services, gourmet dining, bespoke travel experiences. These individuals demand tailored financial services that match their modern, dynamic lifestyles. They seek seamless digital banking experiences, comprehensive wealth management, and investment opportunities that align with their sophisticated tastes.

In recent years, Indian banks have navigated global macroeconomic changes and interest rate volatility, while ensuring to deliver strong financial returns. Recognising their strategic position, they have leveraged the opportunities presented by the driving affluent cohorts and curated exclusive programmes.

YES BANK, stands at the forefront among these key players offering elite benefits to HNIs and emerging affluent segments, with its unique programmes tailored for the specific stature of those individuals. These specialised unique offerings are imbibed with a comprehensive customer-centric approach and offer curated product offerings and services, coupled with a host of lifestyle benefits, wealth management and exquisite service solutions to provide a delightful experience to customers.

The Bank’s multi-dimensional offering bouquet includes two specialised programmes, YES First and YES Grandeur, which are designed to cater to the specific needs of distinct customer segments. YES First and YES FIRST Business are premium wealth management and business banking programmes designed to serve banking, wealth and lifestyle needs of affluent individuals and businesses. YES Grandeur is an exclusive banking programme launched to capitalise on the white space in industry addressing the unique financial and lifestyle needs of India's fast-growing Emerging Affluent segment.

Clients benefit from dedicated relationship managers, supported by a team of product experts, who understand their unique financial landscapes, offering customised solutions tailored to their needs. This personalised approach ensures that clients feel valued and supported, turning routine banking into a rewarding experience.

Additionally, the programmes provide clients lifestyle benefits that go beyond banking, such as complimentary access to airport lounges, enhancing their travel experiences with comfort and ease. The zero cross-currency markup on international transactions means more savings during travels abroad. Everyday banking experience is elevated with special offers and benefits on popular services like Zomato and Blinkit, movie tickets and refreshments, making routine expenses more rewarding.

Mr. Dheeraj Sanghi, Country Head- Branch & Affluent Banking said “In today’s world, it is important to constantly re-invent solutions and offer omnichannel experience to affluent clients. We have done extensive innovation to our offerings for High-Net-worth clients which is best in class in the entire Industry. We believe in keeping client experience as the key theme for each design enhancement that we undertake, be it launching iris by YES BANK, the next-gen mobile banking app or augmenting branch infrastructure for affluent clients. Our refreshed brand identity compliments well with affluent clients’ expectations of banking with a modern, agile, and digitally superior bank. We strongly believe in India’s growth story leading to increased opportunity to acquire and service affluent clients and our endeavor will be to be Industry best in this space”

YES BANK has strategically distributed its 1000+ branches across metros and tier-1 cities where affluent growth is highest. The Bank’s competitive interest rates across savings account and fixed deposits, wealth management solutions, and personalised attention make it an unparalleled partner and a one-stop destination for the customers. YES BANK's offerings ensure that the spectrum of customers - individuals, business owners, tech entrepreneurs, Non-Resident Indians (NRIs), and high-earning salaried professionals, receive the appropriate financial expertise and services to evolve and grow.

Specially focused on the business and MSME segments, YES First Business an exclusive banking programme, covers various aspects of businesses across Cash management, Trade and Forex, Working Capital, Commercial Cards, Business loans and other state-of-the-art banking solutions.

As the affluent class continues to expand, YES BANK's offerings ensure that these individuals and businesses receive the financial solutions and expertise they need to thrive. The combination of premium service, cutting-edge digital platforms, and personalized banking experiences makes YES BANK the ideal partner for India’s affluent.

For those looking to enhance their banking experience and enjoy the exclusive benefits tailored to their sophisticated lifestyles, YES BANK's YES First and YES Grandeur programs are the perfect solutions. To learn more and enroll in these programmes, visit https://www.yesbank.in/ 

The pages slugged ‘Brand Connect’ are equivalent to advertisements and are not written and produced by Forbes India journalists.