Insight Report: Banking the Mass Affluent

Economic conditions declined and competition increased in the retail banking industry as a result of the financial crisis. Banks have found themselves under pressure to re-evaluate their strategies and seek alternative sources of profit. In the midst of this altered environment, banks have adopted various strategies to decrease operating costs and increase their revenue potential. Banks globally are changing their business models to focus more on the potential of segments that yield larger profits. Mass affluent consumers are one such segment, offering significant profit potential compared to the mass market due to their increased spending power.

Scope

An extensive analysis of the global mass affluent banking industry.

An evaluation of retail banking strategies employed to target mass affluent consumers.

Analysis of the key drivers in the mass affluent market.

An examination of the use of data analytics in determining consumer behaviour and product design.

An investigation of the application of digital technology in delivering personalized products and services to mass affluent consumers.

Case studies of successful customer acquisition and engagement strategies deployed by retail banks.

Scrutiny of the key challenges faced by retail banks in targeting mass affluent consumers.

The global outlook for mass affluent banking.

Key Highlights

Why has the importance of mass affluent consumers increased significantly for retail banks in the last decade?

What is the size of the mass affluent market? How substantial is the proportion of total global wealth it controls?

What are the three key issues putting retail banks’ profitability under stress?

What innovative strategies are banks adopting in their quest for profit and a larger mass affluent customer base?

Which social media strategies are banks seeking to emulate in their efforts to target mass affluent consumers?

What is now viewed as both a critical tool, and a crucial requirement, in fine- tuning a strategy to profit from the mass affluent sector?

Which key processes should you view as essential components of a marketing strategy if banks are to fully capitalize on the mass affluent market potential?

What are the major challenges hindering banks from successfully serving the mass affluent market?

Reasons to buy

Gain an understanding of the global market potential of mass affluent banking customers.

Identify the needs and purchasing behaviours of mass affluent banking customers and incorporate these key insights into the formulation of your sales and marketing strategies.

Investigate the investment trends of mass affluent banking customers and position your propositions accordingly to maximize your revenue streams.

Analyze customer-specific strategies, products and services employed by global banks to attract mass affluent consumers.

Evaluate insights into the advancement of digital channels and the use of data analytics in the mass affluent market to assist you to design your product offerings in order to exploit your commercial advantage.

Identify best practice and align to the latest market trends to increase your chances of success in targeting mass affluent customers.

Companies mentioned

American Express

Bank of America

Barclays Bank

BBVA Compass Bank

JP Morgan Chase

Capitec Bank

Citibank

Citizens Bank

Coutts

Halifax

HSBC

HDFC Bank

ICIC Bank ...

American Express

Bank of America

Barclays Bank

BBVA Compass Bank

JP Morgan Chase

Capitec Bank

Citibank

Citizens Bank

Coutts

Halifax

HSBC

HDFC Bank

ICIC Bank

Kotak Mahindra Bank

MasterCard

NatWest

Banco Santander

SunTrust Bank

Wells Fargo

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 ...

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 GlobalData

7.3 About GlobalData

7.4 GlobalData’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 ...

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: ...

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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