本報告已在2011年07月19日停止出版。
Abstract
Introduction
This report assesses mass affluent propositions in the UK, and includes data
on the number of mass affluents segmented into four liquid asset bands from
2003-2012.
Scope
*Sizes the mass affluent market by asset band, from 2003 until 2007. Forecast
data is provided for the years 2008 to 2012.
*Identifies the key product and service areas that banking led and investment
led financial institutions should provide to their mass affluent clients.
*Examines and compares the quality of website offerings of 22 financial
services institutions to mass affluent clients.
Highlights
Mass affluent investors are sophisticated, looking beyond just price when they
regard the offerings of banks and other financial institutions.
In an increasingly competitive, sophisticated market, websites are a powerful
means to convey brand and image as well as the range of products and services
on offer by a bank or investment house.
Good websites depend upon aesthetics, originality, intuitive and clearly laid
out navigation, as well as good accessibility for all. These are what
' attract' customers before content is explored.
Reasons to Purchase
*Understand the banking product and service principles for the mass affluent
customer segment.
*Assess market attractiveness by reviewing size and growth forecasts for the
potential wealthy client base through 2012.
*Compare the relative attractiveness of website offerings by market peers.
Table of Contents
Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Financial
institutions must use their website to convey their brand and image as well as
product and service offerings to mass affluent clients 2
The mass affluent
population in the UK is growing, although there will be some slow down in the
rate of growth over the next five years 2
Banks and portfolio management
companies differ a great deal in terms of the actual services they offer and
how well they present their company on their website 2
Table of Contents
3
Table of figures 4
Table of tables 5
SPECIAL FEATURE: WEBSITES
ON THE FRONTLINE 6
Websites are more than a marketing tool, they are
indispensable product and service features of financial institutions 6
Retail banks in the UK need to increase their deposit base and the lucrative
mass affluent market is a valuable one 6
Websites offer the opportunity to
promote the company, provide a wide range of information, and enable clients
to perform banking transactions 6
Websites are a key mechanism for banks
and investment houses to serve the mass affluent market 8
The mass
affluent use the internet for financial research and undertaking banking
transactions 8
The mass affluent use the internet to research for the best
product or service at the best price 8
Price comparison websites are
enormously increasing the ease with which consumers can compare financial
products in order to get the best available 9
The mass affluent use the
internet to undertake financial transactions 9
The internet can quickly
bring customers to a bank, but just as quickly lead them away 11
Customers
are becoming increasingly sophisticated and want more than ' price' 11
The
key features of a good website 11
Aesthetics - because first impressions
count 12
Originality - because mass affluent people like to stand out from
the crowd 13
Innovative example: Citi maintains the same navigational
structure for its mass affluent offering but ' brands it gold' 14
Innovative example: HSBC presents paperless statements in a highly original
way, turning online statements into a virtual forest 15
An intuitive
navigational structure is a key to clients fully exploring the site 16
Web
accessibility and disability issues must be treated seriously by banks 17
Some UK banks are not faring well with enhancing website accessibility 18
Greater direct marketing of their full range of products and services could
improve the position of banking and investment institutions 18
Direct
marketing goes straight to the consumer and has traceable, measurable results
18
Better mass affluent banking means building personal relationships with
clients in a technological age 19
Innovative example: The BNZ uses text
messages and email alerts to keep in touch with clients 19
UK MASS
AFFLUENTS ARE A LARGE MARKET SEGMENT 21
There were 8.4 million mass
affluent individuals in the UK in 2007 21
There has been a fall off in the
overall number of mass affluent individuals in 2007, after good growth between
2003 and 2006 21
UK Mass affluents lost £20 billion in onshore liquid
assets in 2007 22
Mass affluent assets are concentrated in the £100k-200k
asset classes 24
The mass affluent population will not recover until 2010
26
2008-9 will be characterized by struggling economies worldwide 26
The mass affluent population will decline over 2007 to 2010 26
Mass
affluent liquid assets will continue to decline until 2010 28
THERE ARE 14
CRITICAL BENCHMARKS FOR MASS AFFLUENT SERVICES 30
The internet is
increasingly the preferred means for researching financial products and
services 30
Datamonitor reviewed the mass affluent website offerings of 22
UK financial service institutions 32
Good customer acquisition involves
clarity and strong referral mechanisms 33
Criteria 1: Clearly stated
threshold 33
Banks tend to be better at clearly stating the criteria for
their service offerings 34
Criteria 2: Multiple threshold measures 34
Several companies exhibit clearly set out, comprehensive, flexible threshold
structures 34
Criteria 3: Client goal assessment 35
Criteria 4: Strong
internal referral system 36
Criteria 5: IFA services 37
Independent
Financial Advisors dominate the provision of investment products and financial
advice 37
A strong distribution system requires access to a dedicated
financial partner 40
Criteria 6: Dedicated 24 hour call centre 40
Criteria 7: Dedicated website with client log on 41
Criteria 8: Clearly
laid out website 42
Criteria 9: Dedicated branches/offices (relevant only
for banks) 42
Criteria 10: Named relationship manager(s) 43
Specialist
strengths must include holistic and specialist services 43
Criteria 11:
Coverage of all important product/service areas 43
Criteria 12:
Availability of international services 46
Criteria 13: Specialist staff in
major product areas 47
Pricing has to be clear 47
Criteria 14: Clearly
disclosed pricing 47
The TCF initiative aims to create a more efficient
and effective market 47
TCF will help investors be better informed about
the price structures associated with bank products and services 48
APPENDIX 49
Definitions 49
Adult population 49
Onshore liquid
assets 49
The drivers of growth in the wealthy population 49
Income
growth (combined with inflation, changes in GDP by sector, household savings
rates and debt levels) 49
Investment returns (market capitalization,
interest rates and bond yields) 49
The following measures are not, in
themselves, drivers of wealthy population growth 50
Market capitalization
50
GDP 50
The following measures are not drivers of wealthy population
growth except under very restricted circumstances 50
Primary residence
value growth 50
Inheritance 50
Methodology 50
Global Wealth Model
50
The UK sub model 51
Bibliography 51
Further reading 51
Ask
the analyst 51
Datamonitor consulting 51
Disclaimer 51
List of
Tables
Table 1: To what extent do you agree with the following
statement: "The internet is a useful source of information for making
comparisons of financial products."? 10
Table 2: Barclays Premier Life
website has both visual and professional appeal and provides key information
on the homepage 13
Table 3: HSBC' s virtual forest saves the bank money and
appeals to green customer sensibilities 16
Table 4: The number of mass
affluent individuals in the UK (000s), 2003-2007 22
Table 5: The levels of
MA liquid assets in the UK, 2003-2007, £billion 24
Table 6: Concentration
of mass affluent wealth in the UK, by asset band, 2003-2007 25
Table 7:
The forecast number of mass affluent individuals in the UK (000s), 2008-2012
27
Table 8: The forecast levels of MA liquid assets in the UK, 2008-2012,
£billion 29
Table 9: Money supermarkets are aiding consumers financial
product and service searches 31
Table 10: Ranking of bank and investment
house websites 33
Table 11: Banks should offer the following specialist
services to mass affluent clients 44
Table 12: Portfolio managers should
offer the following specialist services to mass affluent clients 45
List
of Figures
Figure 1: The internet is useful for making financial product
comparisons 10
Figure 2: Citi brands its Citigold microsite gold: ' the
service that pays you more attention' 14
Figure 3: Abbey Premium clearly
sets out to the client the navigational structure of the website 17
Figure
4: The BNZ uses text messages to keep in touch with its clients 20
Figure
5: The number of UK mass affluent individuals has grown since 2003 22
Figure 6: UK mass affluent wealth is concentrated in the middle asset bands
23
Figure 7: Concentration of mass affluent wealth in the UK, by asset
band, 2007 25
Figure 8: The mass affluent population in the UK will grow
to over 9.4 billion by 2012, representing over 19% of the adult population
27
Figure 9: The rate of growth of mass affluent liquid asset will slow
over the period 2008 to 2012 28
Figure 10: The IFA industry is
characterized principally by single outlets 38
Figure 11: The IFA industry
is characterized principally by case sizes of less than £5,000 39
Figure
12: Bank of America provides tools to enable 42
Figure 13: Eden Financial
has a clearly laid out website which promotes all its client offerings 46
