Nitin Rao: Pioneering Innovation In The Wealth Management Businesses In India
Nitin Rao
CEO
Nitin Rao, the CEO of InCred Wealth, places a high value on his engineering education and subsequent work on the shop floor at Bharat Forge because it shaped him into a process oriented individual with a structured approach to work, which has served as the foundation for all his work throughout his life. Once he became an engineer, an industrialist told him, "Forget the engineering, maintain the method, and you will be successful in life". In Nitin's own words, "This has been reinforced at many phases in my career, and I strongly believe that this approach is lacking in the corporate sector. Execution excellence is achieved when processes are well integrated".
Nitin has over 30 years of investment expertise in the Banking & Financial Services industry and has led many initiatives, including assisting in the development of customer focused, pioneering wealth management companies for one of India'smajor financialinstitutions. Strategic guidance in marketing strategies for companies, stock research tracking sectors, helping the investment desk in treasury, and finally, creating step-by-step the wealth management paradigm for investors across segments are among his skillsets across multiple entities.
Engaging in an exclusive interaction with CEO Insights, Nitin highlights the nuances of his journey as a leader in the financial sector and spearheading the operations at InCred Wealth.
Share with us the inception story of your company and what inspired you to establish InCred Wealth?
At a certain stage in your career, you figure-out where you are in terms of security and what you want to focus on building going forward. I was torn between two ideas: One was the idea of early retirement, which I thought was thrilling, and the other was about reinventing myself as a millennial at 50. I believe in the power of our ideas being able to guide us in the direction we desire, aided by fate.
With over three decades of experience and a fast changing investment landscape, I was always convinced that there would be opportunities to create distinctive innovations in the area of investments that had never been done before. And the industry, which is dominated by banks was not going down that road.
I also believed that as the business has developed, there are a lot of very high potential people out there that, who if properly coached, empowere and driven, might create an entity that could make a real difference. Fortunately, I met Bhupinder Singh, who has a strong international perspective and the ambition of establishing an integrated financial service firm in India, complete with a world class wealth business.
Despite my extensive expertise in this industry in India, I recognized that there was so much more progress that could be achieved based on Bhupinder's own and his core team's global experiences and ideas. I was convinced that a good platform could be created for the next generation of wealth management business in India. And not to forget, on a global scale for the emerging global Indian. My desire to apply all of my experience in building and scaling a wealth business in India, as well as Bhupi's desire to build a global entity with all of the product expertise seen internationally, have merged into what I believe is a very exciting InCred Wealth proposition.
As a CEO, what are strategic guidance and direction given to the board to ensure that the Company achieves its vision and mission? What different roles have you been undertaking at InCred Wealth?
During the past 20 years in India, the wealth business has matured into a slightly commoditized play controlled by a few large financial institutions. I believe the future will be extremely different, with more granular products and services coming-in and business dynamics rapidly evolving to include not only distribution, but also funds management.
The strategic direction was to first establish a foundation of systems and processes that would aid in a quick takeoff. Second, was to hire a team of senior executives who had an entrepreneurial streak. Third, to create differentiators in the product ecosystem by leveraging the group's global talent and strong product innovation capabilities. And finally, to use new-age social media as a tool for faster image creation and information dissemination.
This initial phase required a speedy build-up, which I believe we accomplished in record time, allowing us to carve-out a market niche for ourselves in a short span of time. This has given us the confidence to continue advancing the phase for another year or so before consolidating briefly and then speeding up again.
Roles, in my opinion, should evolve based on the strengths we perceive in the team members and filling in the gaps as they arise.
What has been your biggest challenge during the initial days of your professional journey?How did you manage to overcome it?
In the early stages of one's professional career it is critical to determine one's likes and dislikes, as well as the field of work in which one wishes to specialize in. This is followed by obtaining an opportunity in the field of one's choice.
So, while a stint in consulting, initially brought me joy, it did not provide me with the gratification of implementation. So, I chose Equity Research and eventually ended-up with HDFC Bank, where I was able to put all of my abilities and skills into scalable execution. After that, once you have started down a route, you'll need the patience to stay on it no matter what. You must also be continually innovating, which means reading, thinking, figuring-out new ideas, and so on. Because innovation allows your superiors the freedom to recognize good ideas and build on them if they like them. Some ideas fail, and you must move on to the next one in that case. Fortunately, my environment and mentors guided me in this direction during the good and the terrible times.
What are the short term and long term goals of your organization? How do you manage to generate great values for your organization
In India, The Wealth Business Has Matured Into A Slightly Commoditized Play Controlled By A Few Large Financial Institutions During The Past 20 Years
As a CEO, what are strategic guidance and direction given to the board to ensure that the Company achieves its vision and mission? What different roles have you been undertaking at InCred Wealth?
During the past 20 years in India, the wealth business has matured into a slightly commoditized play controlled by a few large financial institutions. I believe the future will be extremely different, with more granular products and services coming-in and business dynamics rapidly evolving to include not only distribution, but also funds management.
The strategic direction was to first establish a foundation of systems and processes that would aid in a quick takeoff. Second, was to hire a team of senior executives who had an entrepreneurial streak. Third, to create differentiators in the product ecosystem by leveraging the group's global talent and strong product innovation capabilities. And finally, to use new-age social media as a tool for faster image creation and information dissemination.
This initial phase required a speedy build-up, which I believe we accomplished in record time, allowing us to carve-out a market niche for ourselves in a short span of time. This has given us the confidence to continue advancing the phase for another year or so before consolidating briefly and then speeding up again.
Roles, in my opinion, should evolve based on the strengths we perceive in the team members and filling in the gaps as they arise.
What has been your biggest challenge during the initial days of your professional journey?How did you manage to overcome it?
In the early stages of one's professional career it is critical to determine one's likes and dislikes, as well as the field of work in which one wishes to specialize in. This is followed by obtaining an opportunity in the field of one's choice.
So, while a stint in consulting, initially brought me joy, it did not provide me with the gratification of implementation. So, I chose Equity Research and eventually ended-up with HDFC Bank, where I was able to put all of my abilities and skills into scalable execution. After that, once you have started down a route, you'll need the patience to stay on it no matter what. You must also be continually innovating, which means reading, thinking, figuring-out new ideas, and so on. Because innovation allows your superiors the freedom to recognize good ideas and build on them if they like them. Some ideas fail, and you must move on to the next one in that case. Fortunately, my environment and mentors guided me in this direction during the good and the terrible times.
What are the short term and long term goals of your organization? How do you manage to generate great values for your organization
as well as for your employees?
Short term objectives include developing innovative products that provide superior returns to clients. With an open architecture distribution model, our Investment Solutions cover not only the standard products across Equity and Debt, but also include customised AIF and PMS solutions curated in the group. In the initial phase, we saw a lot of opportunities to create innovative debt products for clients be it MLDs, structures, high yield bonds or secondary market bonds where we created our initial niche of differentiation. Ensuring that the team maintains a minimum AUM across both HNI and UHNI customers, and ensuring that customers recognize the value of our products and begin to form relationships with us is critical. In five years, we hope to be regarded as one of India's leading wealth management companies, providing higher returns to customers through a combination of distribution and fund management options. At the same time, we see our employees benefiting from a strong meritocracy culture and being a part of India's fastest growing sector. Delivering high profitability for the shareholders is of course crucial in the long run.
How has Covid-19 impacted the Financial Service industry? What are the major hurdles witnessed by your organization due to the pandemic and how did you manage to overcome them?
The year 2020 was significant in launching InCred Wealth’s full-scale operations. However, just as the squad was getting together, our plans were hit by the pandemic and the ensuing lockdown. It was difficult to picture a high touch industry like wealth management operating and prospering during a lockdown, but that is exactly what we did. Undaunted, and with a single minded commitment, the team continued to lay the groundwork for the company and we recruited the best individuals to accomplish amazing outcomes.
Our internal systems and mail servers were already cloud based, and everyone had access to their laptops, so transitioning to a remote setup was quick and painless. Since we were just getting started, I suppose the pandemic also broughtout the do-or-die spirit in everyone on the team.
For a company that started operations during the pandemic year, it has gained the trust of over 1500 HNI/UHNI clients and garnered over Rs. 6,000 crores in assets under management(AUM), with 60+ Relationship Managers spread across nine locations in India, to become one of the market's leading players.
How do you maintain the perfect balance between your professional life and your personal life?
If work is your passion, you consider it to be a part of your personal life, since it keeps you motivated. However, I have learned over the years that it's equally crucial to let go and empower your leaders so that they can share the same vision and be motivated to self deliver. I'd like to think that as my career progressed, I did that well because then you have more time for your personal life.
On a personal level, I am a spiritual believer and a fundamental follower of the Isha Foundation's meditation techniques. I have begun to devote more time to fitness and exercise. I also enjoy cooking and spending time with my children and class mates, albeit these activities are mostly done over WhatsApp in the modern world.
Nitin Rao, CEO, InCred
Nitin has over 30 years of experience in the Banking and NBFC industry, having built successful private wealth businesses for some of India's most prestigious financial institutions. He was previously the CEO of Reliance Wealth Management. Prior to that, he was Group Head at HDFC Bank, where he was responsible for all aspects of Private Banking and Investment Product distribution business in India. He played a key role in establishing the HDFC Private Banking network from the ground-up.
Short term objectives include developing innovative products that provide superior returns to clients. With an open architecture distribution model, our Investment Solutions cover not only the standard products across Equity and Debt, but also include customised AIF and PMS solutions curated in the group. In the initial phase, we saw a lot of opportunities to create innovative debt products for clients be it MLDs, structures, high yield bonds or secondary market bonds where we created our initial niche of differentiation. Ensuring that the team maintains a minimum AUM across both HNI and UHNI customers, and ensuring that customers recognize the value of our products and begin to form relationships with us is critical. In five years, we hope to be regarded as one of India's leading wealth management companies, providing higher returns to customers through a combination of distribution and fund management options. At the same time, we see our employees benefiting from a strong meritocracy culture and being a part of India's fastest growing sector. Delivering high profitability for the shareholders is of course crucial in the long run.
How has Covid-19 impacted the Financial Service industry? What are the major hurdles witnessed by your organization due to the pandemic and how did you manage to overcome them?
The year 2020 was significant in launching InCred Wealth’s full-scale operations. However, just as the squad was getting together, our plans were hit by the pandemic and the ensuing lockdown. It was difficult to picture a high touch industry like wealth management operating and prospering during a lockdown, but that is exactly what we did. Undaunted, and with a single minded commitment, the team continued to lay the groundwork for the company and we recruited the best individuals to accomplish amazing outcomes.
Our internal systems and mail servers were already cloud based, and everyone had access to their laptops, so transitioning to a remote setup was quick and painless. Since we were just getting started, I suppose the pandemic also broughtout the do-or-die spirit in everyone on the team.
For a company that started operations during the pandemic year, it has gained the trust of over 1500 HNI/UHNI clients and garnered over Rs. 6,000 crores in assets under management(AUM), with 60+ Relationship Managers spread across nine locations in India, to become one of the market's leading players.
How do you maintain the perfect balance between your professional life and your personal life?
If work is your passion, you consider it to be a part of your personal life, since it keeps you motivated. However, I have learned over the years that it's equally crucial to let go and empower your leaders so that they can share the same vision and be motivated to self deliver. I'd like to think that as my career progressed, I did that well because then you have more time for your personal life.
On a personal level, I am a spiritual believer and a fundamental follower of the Isha Foundation's meditation techniques. I have begun to devote more time to fitness and exercise. I also enjoy cooking and spending time with my children and class mates, albeit these activities are mostly done over WhatsApp in the modern world.
Nitin Rao, CEO, InCred
Nitin has over 30 years of experience in the Banking and NBFC industry, having built successful private wealth businesses for some of India's most prestigious financial institutions. He was previously the CEO of Reliance Wealth Management. Prior to that, he was Group Head at HDFC Bank, where he was responsible for all aspects of Private Banking and Investment Product distribution business in India. He played a key role in establishing the HDFC Private Banking network from the ground-up.