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Insight Report: Banking the Mass Affluent

  • April 2015
  • -
  • Timetric
  • -
  • 39 pages

Synopsis
Timetric’s 'Insight Report: Banking the Mass Affluent' analyzes the potential of mass affluent consumers in retail banking industry. Following the financial crisis, banks have been pressurized to re-evaluate their strategies and seek alternative sources of profit as economic conditions declined and competition increased. In this altered environment, banks have adopted various strategies to decrease operating costs and increase revenue potential. Consequently, the banks globally changed their business models to focus more on segments that yield larger profits. Mass affluent consumers are one such segment, offering significant profit potential compared to the mass market due to their relatively high income, frequent travel, and increased spending.

The report extensively details mass affluent consumers and their sub-groups, their various financial goals, behaviors and investment trends, and their future financial requirements. It includes in-depth analysis of various strategies adopted by banks across the world to attract mass affluent consumers. The use of digital technology in service delivery and the role of data analytics in determining future courses of action for banks are also extensively discussed. The report also diagnoses the limitations and hindrances faced by banks in designing customer-specific offerings, and includes case studies on strategies and products devised by banks to acquire mass affluent consumers.

Summary
Timetric’s 'Insight Report: Banking the Mass Affluent' provides top-level market analysis, information and insights into mass affluent consumers in the retail banking industry. It covers:

- An in-depth analysis of mass affluent consumers and trends they exhibit across the world.

- Extensive analysis of mass affluent consumer sub-groups, and their diversified needs and requirements.

- Detailed analysis of banking strategies to target mass affluent consumers.

- Use of digital technology in delivering personalized products and services.

- Analysis of mass affluent drivers, opportunities and challenges for retail banks.

- Case studies of successful strategies by banks in targeting mass affluent consumers.

- The outlook for mass affluent banking.

Scope
- The report provides extensive coverage of banking strategies, products and services to target mass affluent consumers.

- It includes examples of applications of digital technology and social media in product and service delivery.

- It helps in understanding use of data analytics in determining consumer behavior and product design.

- It analyzes issues and challenges faced by the banks in targeting mass affluent consumers.

- It analyzes the effective customer acquisition and engagement strategies deployed by banks, in the form of case studies.

Reasons To Buy
- Gain an understanding of the global market potential of mass affluent consumers.

- Understand the needs, purchasing behavior and investment trends of mass affluent consumers.

- Acquire in-depth knowledge of various customer-specific strategies, products and services employed by global banks to attract mass affluent consumers.

- Gain insights into advancements of digital channels and use of data analytics in designing product offerings.

- Identify best practices adopted by banks to maximize success in targeting mass affluent customers, in the form of case studies.

Key Highlights
- The significance of mass affluent consumers for banks has grown in the last decade. Although the market is relatively small in terms of population, it controls a significant proportion of total global wealth.

- With banks’ profitability under pressure as regulations tighten, competition increases and consumer behavior changes, their focus is shifting to mass affluent consumers for revenue generation

- Many banks are contemplating an entry into innovative product design, in a quest for profit and a mass affluent customer base. Banks have adopted strategies such as introduction of premium accounts, which offer value-added services, price differentiation, and the use of social media and mobile platforms to target mass affluent consumers.

- Data analytics have become a critical tool in determining consumer buying behavior, investment goals, risk-taking ability and other client characteristics. These insights enable banks to fine-tune their strategies in developing client-specific products.

- While mass affluent consumers represent a major opportunity for banks, serving the market brings numerous challenges. A successful product and marketing strategy requires concerted effort and focus on consumer convenience and objectives to fully capitalize on the market’s potential.

Table Of Contents

Insight Report: Banking the Mass Affluent
Table of Contents
1 Executive Summary
2 Global Snapshot of the Mass Affluent Market
2.1 Market Potential of Mass Affluent Consumers
2.2 The Mass Affluent - Key Financial Challenges
2.3 Evolving Regulatory Framework
3 Why Banks Serve Mass Affluent Consumers?
4 How Should Banks Target Mass Affluent Consumers?
4.1 Winning the Elusive Market
4.1.1 Developing specialized menu of products and services
4.1.2 Providing exemplary customer experience
4.1.3 Offering personalized advice and assistance to consumers
4.1.4 Engaging consumers through digital channels
4.2 In-Depth Analysis of Mass Affluent Consumers
4.3 Why Have Banks Been Slow to Capitalize on the Market?
5 Case Studies
5.1 Santander Select - a mix of products and services for mass affluent consumers
5.2 Capitec Bank - targeting the mass affluent for sustainable growth
5.3 Product bundling - HSBC's linking of the Premium credit card with Premium banking
5.4 Citizens Bank's expansion strategy to target mass affluent
5.5 Bank of America simplified financial management with Merrill Edge
5.6 SunTrust Bank's SummitView - a disruption in online financial planning platform
6 The Way Forward for Banks
7 Appendix
7.1 Methodology
7.2 Contact Timetric
7.3 About Timetric
7.4 Timetric's Services
7.5 Disclaimer

List of Tables
Table 1: Impact of Regulation on Banks' Fee-Based Incomes
Table 2: Product Offerings for Mass Affluent Consumers
Table 3: Premium Credit Cards - Dynamics by Country
Table 4: Bundled Product Offerings for Mass Affluent Consumers
Table 5: Reward Programs for Mass Affluent Consumers
Table 6: Chase Margin Lending Facility
Table 7: Analysis of Mass Affluent Consumers
Table 8: Mass Affluent Consumers - Distribution Strategies and Focus Areas

List of Figures
Figure 1: Mass Affluent Populations and Population Percentages in Key Markets, 2014
Figure 2: Most Effective Media to Engage Consumers, 2013 vs 2016
Figure 3: Mass Affluent Consumers - Key Financial Challenges
Figure 4: Global Wealth Distribution, 2014
Figure 5: Credit Card Spending in the US and UK
Figure 6: Credit Scores of US Consumers
Figure 7: Impact of the Weak Economy on US Consumer Spending

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