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A few thoughts..
February 2020
Key factors shaping our business environment
Growing global
remittances
• Inward- USD 78.80
bn (CY2018)5
• Outward- USD
13.78 bn (FY2019)6
Share of affluent
rising1
• 16% in 2025
(8% in 2016)
Growing ecosystems
MF AUM2
• ₹ 28 tn (Jan-20)
• ~2.5x increase in 5Y
Life Insurance AUM2
• ₹ 39.6 tn (Dec-19)
• ~2x increase in 5Y
Internet users in India3
• 566mn users
• 38% penetration
• Expected to grow by
40% till 2023
Data costs are down by
> 95% since 20134
Digital India –
“Aadhaarisation”
Financialisation
of savings
Increase in
digital
Widespread
affluence
Indians making
global imprints
1. Annual Gross Household Income of greater than $15 thousand, Source:BCG CCI Proprietary Income & BCG Analysis
2. MF AUM from AMFI, LI AUM from Life Insurance council
3. Digital Trend : Kantar IMRB ICUBE Report 2018
4. Source: Mckinsey
5. Inward remittance – World Bank report on Personal Remittances
6. LRS- RBI report on Outward remittance under LRS for resident Individuals
Tailwinds of increasing affluence, financialisation and digitisation
2
Key factors shaping our business environment
Traditional
investment houses
Branch and sub-broker
driven outreach,
Diversified presence
into NBFC/HFCs/AMCs
and wealth
Bank affiliated
investment houses
Focused on leveraging
synergies with the bank
New generation
discount brokers
Low barriers to entry
Potential emergence
of ecosystem players/
techfins
Product expansion, not
fundamentally a
financial player
Evolving nature of Competition
3
Key factors shaping our business environment
Co-mingling of funds
No upfront fee in MF
Treatment of client securities
Margin norms
MTF regulations with Net-worth criteria
Mandatory call recording
Distribution & advisory
PMS Client definition
No upfront in PMS
Regulatory direction shaping business models: Transparency & customer experience
4
Key factors shaping our business environment
Branch Call Mobile/ On the goOnline
Simplicity Speed Options Hyper
personalisation
Trust & brand gaining importance ……again
Engages on
mobile
Values
Mindset
Evolving consumer preferences: Digital, demanding, clutter free; simple &
friction free engagement key to building scale business
5
#1 Equity franchise1
Total assets* of ` 2 tn+
Private wealth clients’ assets > `1 tn**
ICICI Securities has built an enviable franchise over the years
Affluent franchise
6
Operational account at 4.7m3
from 2.5m in FY14
Overall active clients at 1.4m3
from 0.7m in FY14
NSE active clients at 9.6 lac4
from 5 lac in FY14
Scale
5 year Revenue CAGR 16% (FY14 to FY19)
5 year PAT CAGR 40% (FY14 to FY19)
5 year Dividend CAGR 50% (FY14 to FY19)
ROE consistently over 50%6
Free cashflow generating high
operating leverage model
Blended market share at 8.7%3
from 4.5% in FY14
MF Revenue market share at 4%5
from 2.9% in FY14
ECM market share at 41%5
from 30% in FY14
Ranked 1st amongst domestic financial advisors2
Strong position across businesses
₹
1.Based on revenues for FY19; 2. By number of deals, merger market league table, As at 9M-FY20 3. As at Q3-FY20, Active clients are for trailing 12 months; 4. Trailing 12
month, as at end Q3-FY20; 5. As at FY19, MF revenue market source AMFI, ECM market share source Prime Database; 6. FY15 to FY19
* Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding
** Assets of our clients with more than 1 cr AUM at individual level including equity demat assets maintained with ICICI Bank and excluding promoter holding
7
Client base is sticky
37% of clients active more than 14 years ago are still active with us
1.Based on retail broking revenues
>65% revenues in each of financial years (FY15 to FY19) was contributed by
customers who have been with us for more than 5 years1
Scalable digital business
Highly
engaging
online
platform
Over 45 products and
services offered online
Over 92%1
Mutual fund
transactions performed
online
Over 95%1
Equity
transactions performed
online
Scalable
81. As at March 31, 2019
12X growth in average daily
turnover in last 6 years
Over 2 million transactions
handled per day
48,000 concurrent users
with response time of 24 ms
Capable of handling 3X in
equity and 6X in non equity
volumes
Reliable &
Stable
Providing seamless
experience
3-tier disaster recovery
system
Fully integrated risk
system, real-time tracking
of trigger prices
Established framework for
managing customer
privacy and information
security
Supported by multi-tier client relationship model
9
Private Wealth
Mass Affluent
& Emerging
Affluent
` 1.0 trillion in assets1
>` 1.0 trillion
in assets2
~30,000 clients 245 RMs
~14,00,000 clients3
1200 RMs+
Online
Online Presence
Over 26,000 pincodes in
India and over 150
countries
ICICI Bank Branches
Over 4,000 ICICI bank
branches for sourcing new
accounts
Partners’ POP
Over 700+ cities/towns
with 8,600+ sub-brokers,
authorized persons, IFAs
and IAs
Own branches
70 + cities
with
178 branches
1. Assets of our clients with more than 1 cr AUM at individual level including equity demat assets maintained with ICICI Bank and excluding promoter holding
2. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding
3. Clients who have transacted at least once during trailing 12 months across all product categories
>` 1.0 trillion in assets2
…which offers significant headroom for growth within
Operational accounts,
4.7 mn1
Ever Active,
2.9 mn2
Active client
1.4 mn3
NSE Active,
0.96 mn4
1. Operational accounts is the total client base with the company
2. Ever Active are the clients who have transacted at least once on our platform
3. Active clients are the clients who have transacted at least once during trailing 12 months across all product categories
4. NSE active client base are the clients who have traded at least once during trailing 12 months
• 4.7 million strong base of operational
accounts; up by 8% YoY
• ~94,000 new clients added in Q3-FY20
• 1.4 million overall active clients, increased by
9% YoY
• 0.96 million NSE active clients, increased by
13% YoY
10
ISec is a 20 year old company… but a 5 year young Enterprise…
11
- Proposition
and mass
customisation
-Newer
customer
segments
-Newer
income
streams
2015-2020
Redefining
- Leveraged
risk
understanding
&
technological
capabilities to
build a robust
trading
proposition
-
Revolutionary
pricing plans
2010-2015
De-seasoning
- Massive
client
acquisition
-Broad based
broking
industry from
Niche to Mass
- Low cost
business
model
2005-2010
Growth
- New
generation
technology
adoption
-Launched
Online Trading
- Customized
Product
offerings
2000-2005
Launch
…and has a strong balance sheet to support business growth
Continue to
Insta Loans
ESOP
Mortgage
Life
Health
General
To emerge as comprehensive financial solutions provider for the affluent Indian
powered digitally with strong relationship coverage
Equity
Mutual Funds
Fixed Income & deposits
PMS
National Pension System
Protection
Re-imagine: API-led solutionsRe-imagine: Digital banking
Wealth & Investments
Assets
&
Loans
Evolving business catering to Life cycle needs of customers
12
Broad basing the business model
Diverse and granular revenue streamsImperatives
Strategy: Strengthening the core and building the future
A. Ramping up scale and value by
augmenting and aligning growth engines
B. Monetize client value
D. Robust technology and
digital agility
E. Operating leverage
through cost efficiency
C. Improving customer
experience
13
Re-imagine: API-led solutionsRe-imagine: Digital bankingTo win …..
14
Scale Personalisation
N=1
Relationships
Lifecycle built on trust
Broad basing
business model
Thank you
February, 2020
Retail Equity Strategy
Our Operating Principle
3
InnovateDifferentiated
offering
Customer Pull
and retention
Ability to
Metamorphose
ICICIdirect Metamorphosis
18
- Proposition
and
personalization
-Newer
customer
segments
-Newer income
streams
2015-2020
Redefining
- Leveraged risk
understanding &
technological
capabilities to
build a robust
trading
proposition
- Revolutionary
pricing plans
2010-2015
De-seasoning
- Massive client
acquisition
-Broad based
broking industry
from Niche to
Mass
- Low cost
business model
2005-2010
Growth
- New
generation
technology
adoption
-Launched
Online Trading
- Customized
Product
offerings
2000-2005
Launch
Our Assets
19
Leveraging key
assets
Creates
new
market &
Customers
• 4.7 Million Customers
• ~10 Lac NSE active
• 3.5 Lac subscription based
customers
• 14 Lac customers are active
• More than 2 Lac Cr of
customer holding1
• Huge behavioral reservoirs
of customer footprint
• Unique products &
Propagation X to Millennial
• 20 Years of Leadership &
rich parentage
• Affluent acquisition
through banking partners
• Asset business through
ESOP & MTF
• Attractive opportunities in
Commodity
• Overseas investment
through LRS
• Creating opportunity for
non consumer through
one-click investment
1. Assets of our clients including equity demat assets maintained with ICICI Bank and excluding promoter holding
New & diversified revenue streams
Earlier Now
Delivery Brokerage
Trading Brokerage
Interest Income-2.0
Subscription Fees-1.0
Demat Fees-1.0
Delivery Brokerage
Trading Brokerage
Interest Income
Four line item of
income augmented
in last one year
Delivering value by
creating personalized
Ecosystem
Going much beyond
transactions
Personalization
Delivering value in every product for every
customer segment
(eATM,online SAM & MTF,Custudy of funds &
securities ……………………………………..)
Proposition
Concept of smart Pricing
Purposeful for customer
Delivering value
Pricing
Resurgence
Partnership
Deepening Channel
Network
Augmenting channel
Value creation for
partner Banks
(Portfolio Triggers, Capital Gains
Smart Orders ……………………)
(Prime, Option 20,Lifetime Prepaid, Diversified
Income Streams ……)
)
(ICICI Bank, Other Banks & Business Partners..)
Specialized functions
22
• Personalization,
• Strong support
system
• Suitable products
and propositions like
eATM prime option
20.
•New products to win
back customers
•Dedicated teams to
engage with dormant
customers
•extensive reach
•analytics based
approach
• Incubation
• Digital onboarding
• Process
decongestion
• 1 click investments
and services
• Higher penetration in
ICICI Bank
• Partnerships
• Online account
opening
• Multi bank
architecture
• Cost optimization
Customer
Acquisition
Customer
Activation
Customer
Retention
Customer
Win-back
Approach towards innovation
23
Innovation
Simplicity
Digitally Accessible
Value Adding
Cost effective
Unique
Innovative offering across generation
3
Generation X
Need for reliability, seamlessness of experience
, cost effectiveness
• Rich user interface, one click portfolio
• Seamless liquidity management
• Precisive capital gain
• Smart order system-SEP,VTC, Multi-price
• Transparent & all inclusive pricing –Free SAM,
Free Call &Trade, Free Research & tools
Millennial
More risk takers, Early Investor
Early Adapter, Impatient, Looking for speed, size
and dynamism, Growing population
• Quick access to market , rich onboarding And
single click solution , liking for mobile
• One click account opening
• One click investments in Golden Stocks ETF
through SEP
• Quicker entry & exit in Market-Bullet, Cloud, 3 Legs
profit order
• Funding Required :Seamless & Online
MTF2.0,STOCK ETF
• Access to Multiple Platform
• Low cost Brokerage Options: Option 20,Prime &
Prepaid
Waiting for generation Z
Approach towards gauging customer needs
25
Listening
•Leads to incremental
innovations
•Elimination of errors
•Simplification of
existing features for
convenience
Observing Behavior
•Identification of un-
touched area of
improvement and
assess new market
opportunities
•Create breakthrough
innovations
Emerging Trends
•Adapting newer
trends across
businesses &
geographies
•Walking through the
digital foot prints of
customers
Experienced Team
•Self experience leads
to better
understanding of
bottlenecks
•Most important
innovations are a
part of our team’s
experience of the
market
26
30%
70%
70% Managing
Present
Catering to
innovations in
new market
space to
create a
breakthrough
Re-evaluating
current
business and
developing it
towards growth
30%
Building Future
ICICIdirect Strategy- Managing Present, Building Future
On of the best year company
delivered on all parameters
Organization at the same time
sowed seeds for next growth
phase and unleashed Prime,
eATM, Option 20 & MTF2.0 &
Multi Bank Tie-up
Disrupted best performing year in following six month
Evolution continues……..
27
Thank you
Technology Landscape
February, 2020
Technology ‘ The Business Enabler’ - 4S
30
Scalability
Speed
Security
Stability
31
Scalability
SpeedScalability
Security Stability
Deliver to scale
• Future ready architecture
Flexible architecture
• Uberisation of services
Run efficiently
• Automate and modernize IT
Scalable Infrastructure
• Secure and scalable infrastructure
32
Speed
SpeedScalability
Security Stability
Agile delivery
• Modular and quick rollout
3D
• Delete, Decongest and Digitize
Connected interfaces
• Reusable modules
Code optimization
• Efficient and continuous improvement
33
Security
SpeedScalability
Security Stability
Embedded security
• Security at the core of development
Segmentation
• Zero trust approach
Analytics
• Pattern/ machine learning based
threat detection
Nextgen SOC
• Orchestration and automation
34
Stability
SpeedScalability
Security Stability
Improve
• Maximum availability architecture
Define
• Define IT deliverables
• Map customer journeys
Benchmark
• Customer experience
Monitor
• Monitor KPI’s
• Continous monitoring
Proprietary and Modular approach
35
Proprietary
Model
System
compatibility
Flexibility
Expandability
Expertise
Subjects needing
expertise are integrated
through API’s
Create an Open
Architecture
Access Expansion and
Scale
In-house built Buy / Partner
+
Digital Platform
36
Track
Acq
uis
itio
n
Customer
Engagement
Th
ird
Party
Dis
trib
utio
n
• TAB / Mobile Based account opening
• Online Account opening
• Bank TAB 3-in-1
• 3-in-1 Pool Account
• Tie Up with Fintechs / Startups through open API
• Consolidated Portfolio Analysis
• One Click Portfolio
• ETF Intelligent portfolio
• iCommunity, Whatsapp and Chatbot
• Finger print based Mobile Trading
• PMS
• Overseas Trading
• Commodities
• Loans (Personal, Auto, Home)
• Credit Cards
• Fixed Deposits
• Insurance through Star, Religare,
ICICI Lombard, ICICI Prudential
• Insta LAS
• Advance Visualisation
• Advance Big Data analytics
• Data modelling
• Predictive analytics
Big Data
Digital
On boarding
New Launches
Ecosystems
Partnerships
Digital
Initiatives
ICICI Bank
Others
Visualization
Digital Journey: Continuous evolution
Online Margin
funding
Prepaid
Bullet
eATM
Prime
One click portfolio
Digital Onboarding
Digital Loans
Open API
Finger print based
mobile app
3-in-1 pool A/C
New products, asset
classes,
engagement
formats
Advance Analytics
Lot has happened Lot is happening Will continue….
37
Thank you
N=1
Deepening Relationship
Personalised & Actionable
40
Understanding icicidirect.com
41
Platform attracts and engages clients across life stages
Ever active clients are spread equally
across age buckets
% of active clients age bucket wise
0%
5%
10%
15%
20%
25%
<= 25
Years
25-35
Years
35-40
Years
40-45
Years
45-55
Years
>55
Years
In last 3 years millennials form 70% of
active customers
% of active clients age bucket wise
0%
5%
10%
15%
20%
25%
30%
35%
40%
<=25 25-35 35-40 40-45 45-55 >55
42
0%
5%
10%
15%
20%
25%
30%
Upto 2006 2007-11 2012-16 2017-20
Client base is sticky
27% of revenue of FY2020 was from 14 years plus
vintage clients
% of Revenue of FY2020 vintage bucket wise
43
Assets grow with age and vintage
Assets* grow with vintage
Average assets per client in Rs Mn
-
0.20
0.40
0.60
0.80
1.00
1.20
Upto 2006 2007-11 2012-16 2017-20
0
0.5
1
1.5
2
2.5
3
>55 45-55 35-45 25-35 >=25
Assets grow with age
Average assets per client in Rs Mn
*Equity+MF assets
44
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Upto 2006 2007-11 2012-16 2017-20
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Upto 2006 2007-11 2012-16 2017-20
Growth in vintage leads to cross-selling
Assets grow with vintage
Demat assets contribution
Assets grow with vintage
MF assets contribution
Cross sell: Current status
45
145,364
493,560
263,828
10,499
1,667,051
120,045
143,583
MF
OTHERS
EQUITY
~ 900,000 clients already have 2 or more products
% of active clients product category wise as on November 2019
Ever active customers
2,843,930
46
Priorities
Increase cross sell ratio
Win back clients who have stopped trading
Activate clients who have never traded
Deepening relationships to enhance life time value from clients
Approach: Creating our own proprietary client map
Transaction behavior
Demographic & Behavior Data
Creating homogenous micro markets for increasing sales efficiency
Giving actionable inputs to RMs and nudging client on the site
47
48
Analytics to identify triggers across client life cycle
Models built for
identifying
Clients who are likely
to attrite
Models provide
pointers on
engagement to
win back clients
and the effective
mode of
communication
Reduced product
usage
ML/ DL models
predict
early signs of attrition
Potential attrition
Win Back
Machine Learning/Deep Learning algorithms to identify potential
stop traders, maximize client life time value & optimize servicing
The new ICICIdirect.com
N=1
Catering to every financial services need
of the mass affluent customer
Product offering – 45 plus products and services
Investments & Services
Insurance –
Life Health and General
Loans & Services
Mortgages, Personal
loans and other
50
Over 400 product combinations formed, top 23 clusters identified for
personalization
Inputs used to target clients for better quality acquisition and to enhance
engagement with existing clients
Using profile and characteristics of identified clusters to target similar profile
from market for better quality by
Customizing marketing campaigns
Selecting appropriate medium
Making appropriate product pitch
Way ahead: Ultra micro targeting
51
Make product experience for the customer unique to the cluster of usage
E.g. Build tools and utilities to model and back test strategies for derivatives
De clutter interface by taking out features which are not used & add value in
products they use the most
Enhance interfaces of transaction & Portfolio and position monitoring
Personalise information within the clusters
Enrich content for Stocks, MFs, Bonds, Insurance
Study, compare and take informed decision
Way ahead: Personalised experience to enhance experience
52
Offer smart execution tools for research and trading strategies that we
publish like
One click Execution in MF based on our research picked baskets of mutual funds
One click Execution in equity based on our research picked baskets of stocks
ETF Intelligent Portfolios (EIP): smart ETF basket across equity debt and bullion
ETF which auto balances
Seamless execution for our clients who buy advisory services from advisory
partners like capitalmind.in, moneyworks4me.com.
Way ahead: Personalised experience to enhance experience
53
In summary
Our client base is sticky and assets and revenues increase over client life time
Client base offers headroom for growth within
Analytics and data sciences to be used for enhancing engagement by preventing
attrition, encouraging win back and activating dormant clients
Analytics to be used to cluster and profile clients to target micro segments and
provide personalized journeys, experiences, content to enhance life time value
54
Thank you
I-Sec Private Wealth
Management
An Introduction
February 2020
Our Genesis
57
ICICIdirect
• Wide range of equity broking products
• Pioneers in digital broking
• Equity research
• Access to CXO/affluent families
Investment Banking Team
• Market leaders in IPO, M&A, ECM
fundraising, debt syndication
• Access to promoters & SME owners,
catering to their business needs
Platform Research
Access
to
Clients
Brand
Name
& Trust
Home Grown Private Wealth Outfit
As India’s economic progress continued, many of
our customers rode up the ladder of wealth. We
saw an emerging opportunity in fulfilling the
evolving needs of these affluent clients
2010
Our Journey
58
Built a Stable & Experienced Team
•16 member senior leadership
•300+ members, including relationship, product, advisory, service and Family Office
•Consistent focus on people development to move up the curve
Strengthened the Proposition
•Open Architecture – bringing diversification across Asset Classes & Managers
•Robust Product Selection Framework
Enhanced Digital Capabilities
•Developed the platform’s product & value added features as per evolving HNI needs
Building A Robust Wealth Franchise
People
245 RMs
Presence
21 cities
Assets*
` 1.02 lakh cr
Revenue
(9M-FY20)
` 172 cr
As on 31 Dec 2019
Clients
30,000
* Not including promoter & concentrated holdings
Introduction to Wealth Management Business
61:39 - Recurring to
Transactional
21:79 - Recurring to
Transactional
With 14+ years of average
overall experience
With more than 1 cr AUM,
at individual client level
Coverage of Tier 2
& 3 Cities
59
Trend of Savings & Investments in India
Source: RBI, AMFI, Crisil Research60
14.2 15 14.5 15.613.2 14.5
18.1
9.310.6 11.9
12.615
14.4
18.7
-2.9 -3.3 -3.6 -3.8 -3.9 -4.7-7.4
FY12 FY13 FY14 FY15 FY16 FY17 FY18
Gross Household Savings (in INR tn)
Physical Savings
Gross Financial Savings
Financial Liabilities
7 8.3
21.423.8
26.5
67.2
77.8
114.7
125.6130
FY13 FY14 FY18 FY19 Dec-19
MF AuM reducing gap with Bank Deposits (in INR tn)
MF AuM
Bank Deposits
…
High Saving Culture & Shift to Financial Assets
0.85 0.90
1.22
1.59
1.75
0.23
0.39
0.84
1.65
2.82
Mar'15 Mar'16 Mar'17 Mar'18 Mar'19
PMS & AIF Asset Growth (in INR tn)
DPMS & NDPMS (ex-debt)
AIF
The Private Wealth Opportunity in India
Source: Count of Adults $1Mn: Credit Suisee Global wealth report 2019, 1 USD = 5 Yr avg exchange rate.
Underserved Wealth Segment – MOFSL Research Report, January 2020 61
Total Individual
Wealth
(5.6tn)
2019
Individuals with
USD 1million Wealth in India
2024P
759,000
1186,000
HNI
(2.2tn)
Non-HNI
(3.4tn)
Non-
Financial
(0.85tn)
Financial
(1.3tn)
Growth of HNIs in India
Our Clientele
Source: Credit Suisse Global Wealth Report, 2019 62
•>100mn USD
(1,790)UHNI+
•50mn – 100mn
USD
(2,670)
UHNI
•1mn – 50mn
USD
(754,540)
HNI
Educated, Sophisticated, Service
oriented
Tech-savvy client – Invests & track on
the go
Values information & professionalism
Prefers process oriented approach
Brand conscious, values trust
Inheritors
Entrepreneurs
Professionals
CXOs
Sharp Focus On Target Client Segment
• Protection Solutions
• Mortgages and Loans
• Tax Advisory Services*
• Estate Planning*
• Real Estate*
Value Added Services
• Equity solutions
• Fixed income solutions
• Alternate investment solutions
• Offshore investments
• Equity Capital
• Debt Syndication
• Mergers & Acquisitions
• Asset Monetization
Business needsInvestment needs
Our Proposition
Wealth Creation Wealth Preservation Wealth Transfer
We engage with our clients through their entire journey with wealth
* Through referral arrangement
Comprehensive Product Offerings To Cater To All Our Clients’ Financial & Allied Needs
63
Our Positioning & Competitive Edge
* Based on revenue of FY19 64
Brand, Proposition & RM-led Engagement Model
Diversified
predictable
revenues
Multiple
growth levers
• Access to clients & assets
• Cross-selling to increase share of
wallet & activation
• Client stickiness ensured by multi-
tiered engagement model
• 55% revenue from clients with us for
over 10 years
• Good mix of transactional & recurring
income
Parentage
People
Proposition
Platform
• Trust & legacy
• Leverage group synergy
• Senior & experienced leadership team at I-Sec
• Senior management at PWM with deep domain
expertise
• Diversification across Asset Classes & Managers
• Robust risk management and product framework
• ICICIdirect is India’s largest retail equity franchise*
• Easy transaction, analytics & reporting for seamless
client experience
Client Vintage Snapshot
65
• Stickiness: 55% of revenue comes from clients with
us for over 10 years
• New Acquisition: 25% of AUM & 28% of revenue has
been added in last 5 years
• Acquiring profitable clients: Clients acquired during
last 5 years have higher average AUM and better
ARPU than the ones on boarded during 2000-2015
31% 29%
26% 26%
17%16%
25% 28%
AUM Revenue
Vintage Split of AUM & Revenue
(9M FY20)
>2015
2010-2015
2005-2010
2000-2005
70,039
106,296
3.20
4.32
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
(10,000)
10,000
30,000
50,000
70,000
90,000
110,000
130,000
150,000
2000-2015 2015 onwards
Acquiring Profitable Clients
ARPU
AUM/Client (Rs. Cr)
Our Acquisition & Engagement Model
66
Acquisition Engagement
Bank channel
• Bank branches
• Synergy with SME banking
Digital channel
• Online Account Opening
• Insta Account
RM sourced
Networking
& References
Wealth Partner
Scale through IFAs with
access to HNI clients
Platform Sourced Open Market Sourced
`
Transactions
• ICICIdirect
• Call & invest
Portfolio reviews
• Risk-based analysis
• Platform assets
• Heldaway assets
RM led engagement
• Regular meetings
• Portfolio reviews
• Market Insight
Enhanced reporting
• Capital gains statements
• Transaction & holding statements
• Portfolio reports
Leveraging Digital To Enhance Customer Experience
Product Selection Framework
67
• Monthly
Strategy Meet
• Asset class view
• Sectoral outlook
• Asset allocation
• Investment
Framework
• Portfolio Manager interactions
• Fund House & Portfolio Manager Due Diligence
• Screening for Investment Framework
• Risk Assessment
• Fund manager track record
• Fund house track record
• Risk based return
assessment
• Focus products &
Product conceptions
• Product selection committee
looks at product proposals
and approves
Robust Process For Risk Management
9M-FY19 and 9M-FY20 yields are annualised
(Rs. Cr.)
Clients with 1Cr+ total AUM
Business Metrics
9 Months9 Months
5,505 6,785 10,889
15,887 19,202 17,736
21,642
34,573
39,471
57,448
74,717
79,784
76,143
79,861
40,077
46,256
68,337
90,604
98,986
93,879
101,503
FY15 FY16 FY17 FY18 FY19 9M FY19 9M FY20
Assets
Recurring Transactional
62 46
89
133 136
100 105
72
70
81
103 82
61 67
134
117
171
236
218
161
172
0.33%
0.25% 0.25% 0.26%0.22% 0.23% 0.23%
0.21%0.18%
0.14% 0.14%0.10% 0.11% 0.11%
1.12%
0.68%
0.82% 0.84%
0.71%0.75%
0.65%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
-
50
100
150
200
250
300
350
400
450
500
FY15 FY16 FY17 FY18 FY19 9M FY19 9M FY20
Revenue & Yield
Recurring Transactional
Yield on Total AUM Yield on Transactional Assets
Yield on Recurring Assets
68
Strategy & Way Forward
69
Increasing Recurring Assets
Asset Allocation
Strategies
One Click Portfolios
Bundled offerings as per
clients’ risk profile & other
curated strategies
Direct2U
Focus on fee-based
advisory products
Curated solutions on
AIF & PMS Strategies
Product Innovation through
In-house PMS Capability
Improving Yield on Transactional Assets
Client Activation
Through dedicated
equity team
Enhanced Equity
Product Features
Prime, eATM, digital LAS to
increase client engagement
Solutions beyond
Investments
Loans, protection solutions,
real estate, estate planning
Curated Fixed Income
Strategies
Structured products and
portfolio construction
Providing Liquidity
Solutions
`
Strategy & Way Forward
70
Acquiring New Clients
Family Office
For UHNI client
acquisition
ESOP Funding
For acquiring corporate
employee accounts
Digital channel
• Online Account Opening
• Insta Account
Wealth Partner
Scale through IFAs with
access to HNI clients
Bank channel
• Bank branches
• Synergy with SME banking
RM sourced
Networking
& References
Client Referencing
Customer delight leads to
network introductions
Exclusive Products
Proposition led acquisition
Thank you
Safe harbor
72
Except for the historical information contained herein, statements in this release which contain words or
phrases such as 'will', ‘would’, ‘indicating’, ‘expected to’, etc., and similar expressions or variations of such
expressions may constitute 'forward-looking statements'. These forward-looking statements involve a
number of risks, uncertainties and other factors that could cause actual results, opportunities and growth
potential to differ materially from those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to, the actual growth in demand for broking and other financial
products and services in the countries that we operate or where a material number of our customers reside,
our ability to successfully implement our strategy, including our use of the Internet and other technology, our
growth and expansion in domestic and overseas markets, technological changes, our ability to market new
products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or
become a party to, the future impact of new accounting standards, our ability to implement our dividend
policy, the impact of changes in broking regulations and other regulatory changes in India and other
jurisdictions as well as other risk detailed in the reports filed by ICICI Bank Limited, our holding company with
United States Securities and Exchange Commission . ICICI Bank and ICICI Securities Limited undertake no
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
This release does not constitute an offer of securities.
