Investable Liquid Assets by xkv17320


									                       MARKETING STRATEGIES FOR THE MASS AFFLUENT

   For information           Expanding Banking and Credit Relationships
William McCracken            Channel and Delivery Issues
  bmccracken@src-            Investments, Wealth Management, and Advice or
 (800) 423-4229.

                       Key Finding from Previous SYNERGISTICS Research:
   and KEY DATES
                       Based on a 2003 study by SYNERGISTICS, three in ten comprise the lower-asset
                       category of the mass affluent segment. More than four in ten fall into the mid range,
   April 13, 2007      and one-fifth are at the upper end of this market.
Sponsor comments on
                                                   Investable Liquid Assets
     June 2007                              (Base = have investable assets of $100K-$1M)
    Initial results
     July 2007                                        Not
   Project Report                                  S pecified

                                                     $750K-$1M            $100K-
                                                        20%              $249.9K


                       Research Issues

                       The mass affluent sector, typically defined as those having investable liquid assets of
                       $100K to $1M, is a large and growing segment which is a veritable goldmine for
                       financial institutions. There are roughly 33 million mass affluent households in the
                       United States – representing about 30% of the population – who control approximately
                       37% of the country’s liquid assets, according to industry experts. Providers, including
                       both banks and investment firms, are looking to acquire mass affluent dollars and grow
                       these relationships through cross-selling. Products such as asset management accounts
                       and separately managed accounts, which offer advisory services and independent
                       money management for an asset-based fee, are being designed and promoted with
                       these objectives in mind. In addition, many are offering wealth management services to
                       address the needs of this market. Although investment and retirement products typically
                       come to mind when considering the mass affluent market, this group, of course, has
                       broader needs encompassing transaction and credit services. The major credit card
                       players have developed products, such as World MasterCard and Visa Signature, tailored
                       for this more affluent group. There is also widespread usage of home equity credit and
                       mortgage products among this segment. The widely Internet-savvy mass affluent are
also poised to become users of various new delivery options including mobile banking by
cell phone or PDA and direct banking. There are still many questions to be answered in
order to serve this group effectively. To what extent are provider relationships with this
segment fragmented? What type of organization is considered to be their primary
provider? How important are traditional banking products and delivery channels to the
mass affluent? Does this segment have unaddressed investment or wealth management
needs? To be successful, it is essential for providers to have a clear understanding of
the mass affluent segment and its sub-segments. [F152]

Research Description and Methodology

This study examines the financial services profile of the mass affluent market. Their
attitudes and involvement with depository accounts, credit, investments, and financial
providers are explored. Experience with delivery and marketing channels is also

National Internet Survey -- 800 consumers with investable liquid assets of $100K to $1M
-- including 400 with assets of $100K-$499K and 400 with assets of $500K-$1M.

Strategic Questions

      Is the concept of a "mass affluent" market primarily relevant to savings and
      investment products? Or, do the households in this segment also have unique
      needs in terms of banking services, credit products, and insurance?

      What is the role of the primary provider in servicing mass affluent households?
      Does this encompass "one-stop shopping" in terms of being a source of most
      accounts and services? Or, is it more perceptual and defined by providing certain
      services or functions?

      What information, marketing, and delivery channels are optimal for meeting the
      needs of the mass affluent? Do online, mobile, and other electronic channels
      compete with or complement traditional channels – such as branches or offices?
      To what extent have direct, online banking relationships impacted this market?

      Are the mass affluent an appropriate target market for financial products
      traditionally thought of as serving the needs of the highly affluent -- asset
      management accounts, separately managed accounts, and wealth management
      services such as estate planning, tax minimization strategies, and special credit

      Do the credit needs of mass affluent households call for more specialized or
      "prestigious" credit products? What is the experience and potential for prestige
      credit cards in this market? Is home equity credit and the accompanying tax
      advantages important to these households?

      What should be the role of investment advisory services in serving the needs of
      the mass affluent – full-service or on more of an "à la carte" basis? To what
      extent are such services currently used and for what purposes?

      Is the mass affluent market defined by very specific asset levels, or is it more of a
      "transition" segment also defined by needs and goals? Or, are there smaller
      segments within the market for which strategies and tactics must be tailored?

                SYNERGISTICS Research Corporation
          2951 Flowers Rd South - Suite 230 - Atlanta, GA 30341
                    800-423-4229 • 404-237-3373
For more information, please contact William McCracken at
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