PMS Bazaar conducted another episode of the Alternates Universe Webinar Series -Season 2- Episode 11 - Trust Tech and Transformation – The Future of Private Banking in India.

To shed more light on these factors, Mr. Vikaas M Sachdeva, Managing Director, Sundaram Alternate Assets and Mr. Arjun G Nagarajan, Chief Economist and Communications Manager, Sundaram AMC, had and interesting discussion with Mr. Vikas Sharma, Head of Wealth Management and Private Banking, IDFC First Bank. 

Key aspects covered in this webinar blog are: 

• Technology: The New Table Stakes in Private Banking
• The True Differentiator: Contextual Relevance and Resonance
• Beyond Seamless Interfaces: Building Long-Term Trust
• Trust: A New Definition
• AI, Predictive Analytics, and Ethical Boundaries
• Transforming for the Future
• A New Model for Private Banking
• Changing Client Preferences: Expanding the Portfolio
• Reimagining Private Banking from Scratch
• Curated Investment Ecosystem

Excerpts from the interview

Technology: The New Table Stakes in Private Banking

The conversation began with a focus on technology’s role in private banking. Mr. Sachdeva challenged the assumption that high-net-worth individuals (HNIs) are not tech-savvy and asked how technology is reshaping their experience.

Mr. Sharma refuted the “misnomer,” stating that many HNI clients are not averse to technology. Especially at the upper end of the segment, clients now expect tech-driven services with a human touch. He highlighted three core areas where HNIs expect seamless delivery:

• Access to Information: This is no longer a differentiator but a basic expectation. Clients demand digital access to their entire interaction history and financial data.
• Personalisation: AI and digital tools help create bespoke experiences for clients navigating large volumes of information.
• Transparency: Digital onboarding has replaced cumbersome paper processes, offering clear, traceable interactions.

Technology, he concluded, is no longer an advantage but simply the cost of entry in today’s private banking world.

The True Differentiator: Contextual Relevance and Resonance

With technology now a baseline, Mr. Sachdeva asked what sets private banks apart today. Mr. Sharma responded that while tech enables delivery, how it is delivered makes the real difference. The human element remains vital.

The differentiator lies in contextual relevance. Data must be converted into intelligent insights that empower clients to make informed decisions. He summed it up as, “It’s not about data; it’s what you do with it.” He added that “resonance is the new alpha in a client’s portfolio,” highlighting the importance of delivering insights that feel personal and valuable.

Beyond Seamless Interfaces: Building Long-Term Trust

Mr. Arjun G. Nagarajan entered the conversation by praising Mr. Sharma’s podcast series before asking how private banks can create bespoke tech experiences that also maintain emotional connections—essential for long-term trust.

Mr. Sharma reiterated that while HNIs embrace technology, their priorities differ from younger customers. For them, a platform must offer: Safety, Control and Personalisation. 

True personalisation begins with awareness—the platform must understand the client’s goals, life stage, and communication preferences. Bespoke experiences aren't just about interface design but about delivering relevant, curated content and services that align with both personal and professional ambitions.

Trust: A New Definition

Mr. Sachdeva then turned to the evolving concept of trust in private banking. How has trust changed with the rise of tech?

According to Mr. Sharma, earlier trust was built on legacy and relationships. Today, while relationships still matter, clients now define trust by:

• Transparency: Clear disclosures on fees and product choices.
• Consistency: Reliable delivery of service and outcomes.
• Intent: Clients are quick to detect whether the banker’s intentions are genuinely client-centric.

When asked what three things Ultra-HNI Investors should seek in a private banker, Mr. Sharma listed:

1. No Bias: Advice must be conflict-free.
2. Strong Platform: Intelligent tools that offer actionable insights.
3. Comprehensive Services: A full suite of offerings, avoiding the need to look elsewhere.

Mr. Sachdeva summarised this as, “No bias, seamless platform, and one-stop service.”

AI, Predictive Analytics, and Ethical Boundaries

Mr. Nagarajan raised the topic of AI and predictive analytics. While their benefits are clear, he questioned their implications for privacy and ethics.

Mr. Sharma acknowledged that predictive tools, when used ethically, can become powerful instruments of trust. Clients value insights derived from their data if those insights are relevant and actionable.

However, he cautioned that this is a double-edged sword. There is a fine line between personalisation and privacy invasion. The key is to respect boundaries and ensure technology adds value rather than discomfort.

Transforming for the Future

Turning to transformation, Mr. Sachdeva asked how IDFC First Bank is shifting from a traditional wealth business to a future-ready model.

Mr. Sharma explained that transformation begins with mindset. The key shift needed is moving from a product-first to a client-first approach.

While asset size, revenue, and tenure remain relevant, what matters more now is how well the bank can support a client's entire life cycle—from early career through retirement and beyond. This calls for anticipating client needs across different life stages and offering suitable solutions proactively.

A New Model for Private Banking

Mr. Sharma outlined a next-gen model: tech-first, digital-first, with AI and data at the core. AI's growing role is particularly notable in personalisation, where it enhances—not replaces—the banker’s role. In his vision, a future-ready private banking experience will be led by technology, with human judgement still at the heart of delivery.

Changing Client Preferences: Expanding the Portfolio

Mr. Nagarajan asked how client preferences are shifting—especially towards newer asset classes such as private equity, venture debt, and structured products.

Mr. Sharma agreed that client expectations have expanded significantly. A decade ago, most conversations centred on equity and debt. Today, that is just the starting point.

Clients now want to participate in the value creation journey—even before companies go public. This has driven interest in Pre-IPO, private equity etc.. Products like venture debt and structured offerings, once niche, are now mainstream.

While traditional equity and fixed-income investments remain important for wealth preservation. but new age clients are increasingly seeking access to new-age investment ideas that offer differentiated returns and early access to innovation.

Reimagining Private Banking from Scratch

Finally, Mr. Sachdeva asked Mr. Sharma how he would build a private bank from the ground up, unencumbered by legacy systems.

Mr. Sharma responded that IDFC First Bank, in many ways, has done exactly that—crafting its private banking division from scratch over the past several years. The guiding principle has been clarity on what the customer truly wants.

He outlined the pillars of a future-ready, customer-centric private banking model:

• Digital-First Approach: Automating routine tasks to enable deeper human engagement.
• Transparent Fees Structure and Ethics: No hidden costs; full disclosure builds trust.
• Unbiased Advice: Guidance should be client-oriented, not product-pushed.
• Comprehensive Offerings: A single platform that fulfills all private banking needs, whether in-house or through trusted partnerships.

He emphasised that such a structure allows for long-term trust, meaningful engagement, and scalable growth through client advocacy.

Curated Investment Ecosystem

For a question asked by Mr. Sachdeva regarding Curated investment ecosystem where all forms of investments can be curated and delivered. Mr. Vikas sharma answered it may not be requirement of all clients but because of digital, customers no longer need any piecemeal information. They expect holistic platforms where they can see all the portfolios and bank accounts whose integeration has been helped by Account aggregators. He emphasized this is the direction we will be moving forward, If it’s done well it would be a new age business architecture however it’s very client specific.  

Mr. Sharma covered all the topics mentioned above in-depth and answered questions from the audience toward the end of the session. For more such insights on this webinar, watch the recording of this insightful session through the appended link below

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