The number of new rich in India will almost double over the next five years, posting the fastest growth of 47%, a latest study says.
In comparison, the number of such individuals with a wealth of over $1,00,000 will grow 7% globally and 10% in Asia by 2020, the study says.
The study, conducted by EIU and commissioned by Citibank, for the first time focuses on new wealth builders (NWBs) -a term used to describe self-made individuals who are either salaried, self-employed professionals or entrepreneurs in new-age startups.
In India, the number of such new wealth builders is expected to be close to five crore and the total value of their financial assets is expected to be $879 billion in 2020 -almost double of what it was a decade ago.
According to the report, the NWBs represent a new breed of self-generated success, are humble and focus on making progress for those around them.
“Nearly eight in 10 NWBs acquired most of their wealth in the past 10 years.Almost none attribute current wealth to inheritance,“ the report said.
According to Kartik Kaushik, Citi India global head of consumer banking, two additional trends for India were that there was a very high savings rate and a majority of them would be young -in their mid-20s to 30s.
He said the growth of this segment provides a big opportunity for banks like Citi. “Until now we had nothing in between Suvidha, Citibanking and Citi Gold.
To address this category, we are launching Citi Priority as an integrated offering for those who maintain a Rs 15 lakh relationship with the bank,“ said Kaushik.
