Affluent
Quote of the month
“The affluent segment has been a major engine of growth for European banks for the last few years. Medium term potential still remains strong even if very few banks have succeeded in leading the market with sophisticated customer segmentation, an aligned distribution model, aggressive and systemic customer acquisition strategies and a focus on customer satisfaction, revenue growth and segment profitability”
Doug Wilson, Director at Finalta, United Kingdom
Overall issues
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Defining the segment
The first requirement for this sector is to identify the mass affluent customers – and then look at ways of acquiring new customers internally or externally. - Defining the offering
Banks that fail to target this segment will have a gap in their services. But should they upgrade their mass market offering or downgrade their private banking service - or provide a subtle but distinct blend of both? It is worth looking at those services that are currently being offered that differ from those for the mass market or private banking segments. - Defining the strategy
Banks need to consider how to develop an effective team of relationship managers for this segment; their strategy for recruiting customers; and where these customers will come from. They may already have synergies between their mass market and private banking divisions.
Efma study
"Affluent banking in Europe" by Finalta, October 2008
Lessons from the most recent conferences
“Mass affluent – Searching for the middle ground”, Barcelona, 8-9 October 2008
(www.efma.com/affluent2008)
“Private banking and wealth management – New wealth for a new generation”, Barcelona, 9-10 October 2008
(www.efma.com/wealth2008)
Best speaker:
Doug Wilson, Director at Finalta, United Kingdom
Best presentations:
- "Do mass affluent customers really want a private banking proposition?"
Alison Tattersall, Head of customer and propositions, Barclays Financial Planning & Barclays Premier, United Kingdom
- "Mass affluent clients and financial services in France"
Philippe Gardes, Director, Exton Consulting, France
- "Experience is everything"
Michael Ruckman, President & CEO, Senteo, Russia
