In a market where wealth is increasing faster than ever, Kotak Mahindra Bank is investing heavily in a segment that accounts for less than 1% of its customers but contributes to more than a third of its revenue. Leading this initiative is Rohit Bhasin, president and head of affluent, NRI, business banking, and chief marketing officer.

In an interview with Fortune India, Bhasin discusses why affluent banking is more than just premium services. It is about exclusivity, family recognition, financial security, and personalised experiences. From the bank’s flagship Solitaire programme to the use of data-driven personalisation, he describes how Kotak is setting new standards for the growing affluent customer base.

Edited excerpts:

Kotak Mahindra Bank recently introduced ‘affluent banking’. What does that mean? Why was it launched?

Affluent banking targets a specific group of customers. For salaried individuals, it includes those with a relationship value of over ₹75 lakh, and for self-employed individuals, over ₹1 crore. Though these customers make up less than 1% of our total customer base, they account for more than a third of our business. We identified this as an opportunity to focus on a rapidly growing segment. With India’s increasing prosperity, salaries and entrepreneurial incomes are rising quickly, and the affluent segment is expected to grow at twice the rate of the overall market. We aimed to create a unique banking experience tailored to their needs, which led to the development of affluent banking.

Why do affluent customers feel financial anxiety?

Through research and conversations, we found four key insights. First, they deeply value exclusivity: they want to feel recognised, not in a flashy way, but through privileges that others don’t have. Second, they see real success when their families benefit from their achievements.

For example, a CEO friend of mine once took his kids to an IPL match in a corporate box. For his children, that was the moment they realised what their father had accomplished. That family pride is priceless. Third, salaried individuals worry about being dependent on a single monthly paycheck. So, they crave ways to build a second source of income. And fourth, entrepreneurs often fight a lonely battle. Unlike salaried employees who get appraisals and recognition, businessmen have to celebrate their wins alone and carry the responsibility for their employees’ livelihoods. Many of them want guidance, mentorship, and networking support.

How did you turn those insights into actual products and services?

We built what we call the ‘solitaire proposition’. It rests on four pillars. The first is exclusivity. For instance, we offer pre-approved loans, ranging from ₹7.5 crore for home loans to ₹1 crore for car loans as well as credit lines of up to ₹25 lakh. No paperwork, no questions asked, just based on the strength of the customer’s relationship with us. This makes them feel valued.

The second is family benefits. We value the relationships within the whole family, which include spouse, children, parents, and provide them with better privileges. We also introduced an invite-only Solitaire credit card, free for life, offering exclusive benefits such as free lounge access for the entire family, zero forex charges on international spends, and accelerated reward miles for travel bookings.

The third is helping customers build a second income. We have created a plan that combines systematic investment plans along with systematic withdrawal plans. For example, someone in their 40s can invest regularly for 10 years, and once they turn 50, they can start receiving a monthly payout similar to a salary, without exhausting the corpus.

The fourth is offering business support to entrepreneurs through networking, mentoring, and financial solutions that help them grow.

Do customers have to pay extra to become part of this affluent programme?

No, there’s no extra charge. Once a customer’s relationship value crosses the ₹75 lakh or ₹1 crore threshold, they automatically qualify. The Solitaire credit card, for instance, normally has an annual fee of ₹25,000, but for Solitaire customers, it’s free for life as long as they remain in the category.

You mentioned personalisation. How do you use the customer data to create customised digital journeys?

We have made a customer lifecycle management system, which functions as a data warehouse for us. It monitors first-party data such as account balances, transactions, investments, and loan repayments, alongside external insights like credit bureau records. Using machine learning, we generate customer personas and propensity models.

For instance, if someone regularly books international tickets, we understand that travel is important to them, and we create customised offers based on this database. The aim is to provide customers with the right products and campaigns at the right moments, continually refining the process to ensure their banking journey is smooth and personalised.

Do you see affluent banking as a niche product?

Not at all. Even though the number of such customers is small, the business value is massive. And since the affluent segment is growing faster than the overall market, we see this as a key area of growth. Our goal is to gain market share in this segment and offer something unique compared to competitors.

Who do you consider your competitor in this space?

Competition comes from multiple directions. It may be from other banks, brokerage firms, and increasingly fintech players. Each of them is trying to attract this customer segment, but we believe our differentiated offering sets us apart.

How important is cross-selling in affluent banking?

Cross-selling is extremely important in this business. In banking, acquiring a customer involves high costs, and servicing them also continues to incur huge expenses. We can achieve profitability through cross-selling various products over time to them. It is important to understand that when a customer chooses your bank as their main institution, they typically open a savings account, take out home loans, credit cards, investment products, and keep larger balances. Wealthier customers, in particular, are more likely and able to buy additional products, making them especially suitable for this approach.

Finally, how do you differentiate between a regular customer and an affluent customer in terms of service?

The difference is clear. Affluent customers get a true ‘red carpet’ experience.  For example, whereas a standard relationship manager might manage 400 clients, an affluent relationship manager typically oversees about 100, allowing for more personalised service. Additionally, each affluent client is assigned a dedicated service manager to handle questions quickly. Products are also differentiated for them. They get a range of exclusive credit cards and pre-approved loans that regular customers don’t receive. In short, affluent customers receive more customised, premium treatment that reflects their value to the bank.