For banks looking to increase their turnover, targeting mass affluent consumers represents the single greatest return on effort. Effectively engaging with the segment will, on average, result in four times as much business for a bank without requiring a significant change in overall customer numbers.
Understand the attitudes and views the mass affluent hold in regards to their budgeting and finances.
Place a dollar value on the difference between a mass affluent client and a retail market equivalent.
Compare mass affluent and mass market cross-selling opportunities.
Better quantify the mass affluent client base by gaining insight into the key demographics of the group.
In which segments is the mass affluent opportunity sufficiently developed as to be a viable market in terms of size and assets?
Which products represent the greatest earning potential from a mass affluent client?
How much more business can a mass affluent client base bring a bank?
What is the mass affluent cross-selling opportunity?
Its large size makes the mass affluent segment an attractive target market, but banks looking to exploit this opportunity need to understand the different opportunities across the globe. Some markets in the West are desirable for their size, while Africa, Asia, and Latin America offer more attractive growth prospects.
The emerging affluent segment will truly test a bank's ability to address the needs of small-scale investors. Often there is strong potential for consumers to accumulate enough assets over their lifetime to eventually be classed as mass affluent.
The importance of advice cannot be emphasized enough, and any mass affluent proposition will need to include this aspect. Besides representing a potential fee-earning service, advice allows banks to deepen the client relationship and decommoditize the client's view of financial services.