HSBC Holdings Plc is reportedly testing new products and services to capture a larger portion of the business from India's wealthy diaspora, who remitted over $100 billion to their homeland last year.
According to a report by Bloomberg, the bank is planning to introduce dollar-denominated products for non-residents from India's low-tax financial hub. These offerings in GIFT City may include savings accounts, insurance, fixed-income products, and other investment options, sources cited in the report said.
Recently HSBC also launched a virtual experience center in the metaverse for non-resident Indians. Accessible via virtual reality headsets or QR codes on smartphones, customers can create avatars to explore credit cards, banking products and investment space.
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Data from the Ministry of External Affairs shows that over 32 million Indians live abroad, primarily in countries like North America, UK and the Middle East. Wealth managers like HSBC, Barclays Plc, and UBS Group AG are all vying for business to capture a portion of this lucrative market.
As per the Ministry of Finance, remittances to India from non-residents surged to $112.5 billion in FY23, up from $89.1 billion the previous year.
There has been a drastic increase in the number of NRIs interested in investing in India's expanding economy using US dollars.
To meet this increased interest, banks are now increasingly focusing on GIFT City to expand their services for non-residents.
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GIFT City offers exemptions from multiple regulations and taxes that are considered obstacles to business and trading in India. Modi is planning to establish GIFT City as a wealth hub to rival Dubai, Mauritius and Singapore, with advisers looking into ways to draw capital from the Indian diaspora.
