Brokerage houses in India are trying to adopt a multi-modal distribution model to increase market share, a report by research and advisory firm Celent says.
Firms are trying to graduate up the value chain to increase profitability and create a new platform for positioning themselves as wealth managers.
The retail brokerage market in India is expected to exceed 20 million investors in the next two years.
The industry is one of the most important provider classes in the wealth management space in the country-vertically cutting across all customer segments and horizontally cutting across all asset classes.
"Huge market potential has attracted a bevy of brokerages looking to seize available opportunities," says Ravi Nawal, senior analyst with Celent’s Indian financial services group and author of the report. "Brokerages are increasingly trying to strike a balance between addressing customer segments profitably and grabbing market share by repositioning themselves on a suitable wealth management platform."
