Best Mass Affluent Propositions 2021

According to GlobalData's Best Mass Affluent Propositions 2021 report, targeting the mass affluent demographic has worked its way up the priority list for banks and wealth managers in recent years. Some banks are not new to capturing this demographic with dedicated services, but in this digital transformation period competition for this lucrative (yet somewhat untapped) group is on the rise.

Heightened competition and regulatory costs for wealth managers, low interest rate margins for banks, and new digital entrants keen to keep their business afloat are all reasons a host of players are targeting the mass affluent. A wide-ranging service with both a high-tech and high-touch feel is in demand in this day and age. As a result, success with this demographic will be dependent on how well such needs can be met.

Key findings discussed in the report:

• The global wealth market will increase by 8% in 2021, surpassing the $150 trillion mark.

• The mass affluent demographic is being targeted by a wide range of financial services players, from wealth managers, to banks, to digital new entrants.

• Multi-faceted services among banks offering mass affluent propositions are the norm, including investment options, insurance offerings, lending, credit cards, travel and lifestyle benefits, family options, and access to financial advisors.

• The second half of the 2010s saw more players incorporate a digital element into their mass affluent propositions, moving services to a banking app, introducing robo-advisors, and using technology to improve the overall customer experience and reach more clients at speed.

• The diagram above is taken from the report, it shows the distribution of affluent consumers globally. Evidently affluent consumers are concentrated in North America and Asia.

Download our free report for more detailed insights.