Best domestic private bank in India 2023
360 One has become a leading name in India’s wealth management industry in just over a decade, thanks in large part to the experience and expertise of its top executives.
Founder, managing director and chief executive Karan Bhagat, chief finance officer Sanjay Wadhwa, chief operating officer Anshuman Maheshwary, and chief investment officer Nikunj Kedia have all spent 20 or more years working in the financial services industry.
Such experience matters, particularly when times are tough: 2022 proved difficult not only because of the macro-economic environment, but also within the bank itself as a handful of senior executives quit, either to go to rival firms or to set up on their own.
360 One, which was set up in 2008 as IIFL Wealth Management and rebranded late last year, has maintained its franchise, and the numbers reflect its leading position among India’s wealthy diaspora.
It reported Rp5.13 billion ($62.6 million) in consolidated profits after tax for the April to December 2022 period, up 24% year on year. Revenues rose 9%, year on year, to Rp11.8 billion for the nine months, while assets under management increased 4.7% to Rp2.75 trillion. The management team attributes this performance to 360 One’s product innovation, its platform proposition and its business model.
Among the innovations is 360 One Plus, the flagship institutional-quality platform for ultra-high net-worth families, which has assets under management of more than Rp365 billion. 360 One Plus takes a solutions approach when building client portfolios, rather than a product approach, with a focus on both fundamental and quantitative analysis. Clients get bespoke offerings tailored to their risk profiles and selected by a group of fund managers.
360 One’s platform is comprehensive, combining an open architecture model with cutting-edge technology that provides client portfolio reporting, analysis and data aggregation.
Its business model has proved successful. 360 One has put more emphasis on bulking up its recurring revenues in recent years as it shifts its focus from transactions to advisory.
In the nine months to the end of December, annual recurring revenue was Rp7.8 billion, up 19% year on year, versus transactional and brokerage income of Rp3.9 billion, which was up 23%.
More change is on the way. 360 One is changing its fee structure, preferring to earn fees directly from clients for its advisory services rather than receive fees or commissions from product sellers.
Competition in India’s private banking market is hot, but 360 One’s goal is for 80% to 85% of its revenue source to be recurring within two years. It plans to open offices in more cities in India, to leverage technology so that it is more agile and to increase its speed of execution.
The firm completed its acquisition of Mumbai Angels, an early-stage venture investment platform, this year. That move could give 360 One’s wealthy clients first dibs on new investment opportunities.