By understanding the mass affluent segment and providing them with a tailored combination of core banking products and lifestyle extras, banks and wealth management organisations will be creating a winning proposition.
Over the last year, much of the financial sector has been turned upside down. As banks look for new growth opportunities in the recovering market, it is worth considering the wealth management sector where high market penetration into the mass affluent segment is still to be achieved.
The opportunity to penetrate the mass affluent segment is vast and it will continue to grow substantially in the long term – the current estimated untapped pool of suitable assets in the UK is £1trillion. In the ultimate search of acquiring high net worth (HNW) customers, now is the time to act as many of today’s mass affluent customers will emerge as HNW individuals as the global economy recovers.
The mass affluent segment is deeply complex and has historically never been fully broken into by any wealth management organisation, tending as it does to fall between the two stools of retail banking and private banking. The key challenge is creating a compelling proposition that will move these untapped mass affluent customers away from the free banking they currently receive within the retail space.
To speak to one of our experts about how you can tailor your offerings to the needs of the mass affluent, or to request a copy of our recent paper 'Attracting the mass affluent', please contact us now.