With these twin moves, Thomas Meier,  region head Asia Pacific of Bank Julius Baer, who is responsible for overseeing the development and management of the Julius Baer franchise in Asia, predicts the bank's operations in India will be profitable in a couple of years.

 

Meier sees the integration of Merrill IWM as an important step in building its presence in India, and will focus on bringing a unique customer centric way of service to Indian high-net-worth individuals.

 

As many of the local banks are simply focused on increasing their number of clients and finding ways to increase their fee base, Meier says Bank Julius Baer will focus instead on its quality of service and build a niche in the market with an advisory model, setting the bank apart from his Indian domestic competitors.

 

“We do not push products, we give advice about products in a portfolio context. We live by a client centric model. This is something that has been proven to be successful in India. The global connectivity that we are going to bring to the clients is also a major advantage. Domestic banks just do not have the global connectivity like we do,” Meier says.

 

Creating a client centric model will give Bank Julius Baer a unique edge in the market, and  along with bringing a globally connected operations network to the country, should allow it to become profitable within a few years, according to Meier.

 

“Our plan will take us to profitability. I am fairly positive it will be done in a couple years, which is the same timeframe we have followed for the rest of the Merrill Lynch’s International Wealth Management business acquisition,” Meier says.

 

But Meier is aware that despite the conclusion of integrating Merrill Lynch International Wealth Management Business in India into its operations, thus expanding its footprint significantly across India’s tier-one cities, the changing regulatory environment and competitiveness of the market will be a challenge that he expects to be facing.

 

“India has a different form of competitiveness that you have to address and deal with. In end you have to deal with an ever changing regulatory environment and talent problem, while at the same time one has to deal with a particular revenue model and a specific cost structure,” Meier says.

 

He added that by staying focused and responding quickly to market changes, his team will be able to overcome these challenges. “We tackle India like all the other markets. “We just stay true to ourselves, which is sticking purely to wealth management—we are very focused.  This helps us to be quick in responding to opportunities in the private wealth management market.”

 

Looking into the future, Meier sees India as a great opportunity for his wealth management business, and sees his client centric model continuing to flourish in the market.

 

“India is a huge market. I really try to bring a successful client centric advisory model to India. I will also bring new product innovations and the global connectivity to India. I want to grow the business, and capture this huge high-net-worth potential, and that is what I am excited about,” said Dr. Meier.