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

December 2012
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Recipe for success:  How financial institutions can forge a sustainable path for mass-affluent customers

At a glance

Learn how leading financial institutions are stepping away from product pushing and meeting the individual needs of the mass affluent customer segment.

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.