Recipe for success: How financial institutions can forge a sustainable path for mass-affluent customers

December 2012

Overview

The new economic landscape is driven by strict capital requirements, narrow net interest margins, depressed commercial lending, and fee limitations. Institutions are asking how they should best deploy their capital. In our view, they should also be focused on what resources they need to best serve their customers.

Wealth management presents an attractive prospect for lending, deposit growth, and fee income. The needs of the wealthy span those of their household, their businesses, and their extended family. Financial institutions serve those needs via mortgage and small business lending, deposit and cash management solutions, investment advice, and other services.

We have observed leading institutions step away from product pushing and strive to understand the current needs of each customer based on his/her individual circumstances. Leading institutions are also helping their customers develop plans for their financial futures, with an understanding that the challenges faced by the mass affluent differ drastically from the challenges of earlier decades. Financial institutions that get it right will realize sustainable revenues and increased bottom-line earnings.

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The mass affluent: Opportunities for financial institutions

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John Garvey
Global FS Advisory Leader & U.S. Banking & Capital Markets Leader
Tel: +1 (646) 471 2422
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Dave Hoffman
Banking & Capital Markets Advisory Co-Leader
Tel: +1 (646) 471 1425
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Dean Nicolacakis
Principal, US FinTech Co-Leader
Tel: +1 (415) 498 7075
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Eileen Perrin
Tel: +1 (704) 344 4113
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