2020 Foresight: Banking The Mass Affluent by WealthInsightReports

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									                                                                                                              Publication date: January 2014
                                                                                                                    Report code: WI0009FR




         2020 Foresight: Banking the
         Mass Affluent




                                                             www.wealthinsight.com




         2020 Foresight: Banking the Mass Affluent
         ©WealtInsight | This report is a licensed product and is not to be photocopied.


Beijing • Buenos Aires • Frankfurt • Hong Kong • Hyderabad • London • Madrid • Mexico City • New York • San Francisco • Seoul • Shanghai • Singapore • Sydney
About WealtInsight

The WealthInsight Intelligence Center Database is an unparalleled resource, and the leading
database of its kind. Compiled and curate by a team of expert research specialists, the database
comprises dossiers on over 60,000 HNWIs from around the world.

The Intelligence Center also includes tracking of wealth and liquidity events as they happen, and
detailed profiles of major private banks, wealth managers and family offices in each market.

With the Database as the foundation for its research and analysis, WealthInsights able to obtain an
unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe
in each of the countries and regions it covers.

Contact:
Ouliana Vlasova

Head of Content, WealthInsight

Ouliana.Vlasova@wealthinsight.com

+44 (0)20 7406 6711




2020 Foresight: Banking the Mass Affluent
©WealtInsight | This report is a licensed product and is not to be photocopied.
TABLE OF CONTENTS

1     Introduction ........................................................................................................ 1
    1.1     What is this report about? ....................................................................................................... 1
    1.2     Mass Affluent – Definition and Scope ..................................................................................... 2

Executive Summary ................................................................................................. 1
2     Global Snapshot ................................................................................................ 3
    2.1     Overview ................................................................................................................................. 3
    2.2     Market Size and Forecast by Region ...................................................................................... 5
      2.2.1        Americas ......................................................................................................................... 5
      2.2.2        Europe ............................................................................................................................. 6
      2.2.3        Asia-Pacific ...................................................................................................................... 8
      2.2.4        Middle East and Africa .................................................................................................. 10

3     The Mass Affluent – Customer Attitude and Behavioral Analysis .............. 12
    3.1     Wealth Management Analysis............................................................................................... 12
    3.2     Spending Behavior ................................................................................................................ 14
    3.3     Spending Behavior Towards Banking Products .................................................................... 18
    3.4     Demographic Analysis .......................................................................................................... 19
    3.5     Emerging Trends – Needs and Priorities .............................................................................. 20

4     Mass Affluent – Key Drivers, Restraints and Opportunities ........................ 22
    4.1     Drivers ................................................................................................................................... 22
    4.2     Restraints .............................................................................................................................. 24
    4.3     Opportunities ......................................................................................................................... 26

5     Bank’s Strategies to Target Mass Affluent .................................................... 29
    5.1     The Americas ........................................................................................................................ 31
      5.1.1        Marketing and social media strategy............................................................................. 31
      5.1.2        Targeting Strategy ......................................................................................................... 34
      5.1.3        Case Study Bank of America ........................................................................................ 36
    5.2     Europe ................................................................................................................................... 37
      5.2.1        Marketing and social media strategy............................................................................. 37
      5.2.2        Targeting strategy ......................................................................................................... 38
      5.2.3        Case Study Lloyds Banking Group ............................................................................... 39
    5.3     Asia-Pacific............................................................................................................................ 40
      5.3.1        Marketing and Social media strategy ............................................................................ 40
      5.3.2        Targeting Strategy ......................................................................................................... 41
      5.3.3        Case Study Standard Chartered ................................................................................... 43
    5.4     The Middle East and Africa ................................................................................................... 44

2020 Foresight: Banking the Mass Affluent
©WealtInsight | This report is a licensed product and is not to be photocopied.
     5.4.1      Marketing and social media strategy............................................................................. 44
     5.4.2      Targeting strategy ......................................................................................................... 44
     5.4.3      Case Study Al Rajhi bank ............................................................................................. 45

6    About WealthInsight ........................................................................................ 46




2020 Foresight: Banking the Mass Affluent
©WealtInsight | This report is a licensed product and is not to be photocopied.
LIST OF TABLES
Table 1: Mass Affluent Population in the Americas, (Million), 2008–2017............................................................... 5
Table 2: Mass Affluent Populations in Europe (Million), 2008–2017 ....................................................................... 7
Table 3: Mass Affluent Population in Asia-Pacific, (Million), 2008–2017 ................................................................. 8
Table 4: Mass Affluent Populations in the Middle East and Africa, (Million), 2008–2017 ...................................... 10




2020 Foresight: Banking the Mass Affluent
©WealtInsight | This report is a licensed product and is not to be photocopied.
LIST OF FIGURES
Figure 1: Mass Affluent Population Shares by Region, (%), 2012........................................................................... 3
Figure 2: Wealth Distribution by Population Category, 2012 (%) ............................................................................ 4
Figure 3: Mass Affluent Populations in the Americas(Million), 2008–2017.............................................................. 6
Figure 4: Mass Affluent Populations in Europe (Million), 2008–2017 ...................................................................... 7
Figure 5: Mass Affluent Population in Asia-Pacific, (Million), 2008–2017................................................................ 9
Figure 6: Mass Affluent Populations in the Middle East and Africa, (Million), 2008–2017 ..................................... 11
Figure 7: Investable Assets Distribution of the Mass Affluent ............................................................................... 12
Figure 8: Mass Affluent Spending Categories ....................................................................................................... 14
Figure 9: Mass Affluent Spending Shares ............................................................................................................. 15
Figure 10: Share of Mass Affluent on Banking Products Spending ....................................................................... 18
Figure 11: Mass Affluent Customers Priority for Financial Products ..................................................................... 20
Figure 12: Banking the Mass Affluent – Drivers and Their Impact ........................................................................ 22
Figure 13: Banking The Mass Affluent – Restraints and their Impact.................................................................... 24
Figure 14: Banking The Mass Affluent – Opportunities and their Impact .............................................................. 26
Figure 15: Market Segmentation and Scope of Business ..................................................................................... 29




2020 Foresight: Banking the Mass Affluent
©WealtInsight | This report is a licensed product and is not to be photocopied.
INTRODUCTION



1 Introduction
1.1    What is this report about?
Providing wealth management services has become a strategic priority for retail banks, wealth
management firms and their rivals. Not only have economic forces driven banks to prioritize this
business, but the deterioration of other profit sources and the need to raise deposits have meant that
providing wealth management services to affluent clients is a key business.

Within the generic category of ‘wealth management’, the mass affluent segment is one of the most ill-
defined and difficult to manage – yet it is essential in the bank’s wealth management strategy. For
retail banks and wealth management firms, today’s mass affluent customer is tomorrow’s most
profitable and lucrative high net worth (HNW) client. Increasingly, the affluent client is becoming a
more significant contributor to the profit of successful practitioners.

This report focuses on the mass affluent customer segment a
								
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