UK banks need to attract mass affluent demographics
UK banks should emphasise track record, financial stability and reputation in order to attract mass affluent demographics, according to a financial services and research firm.
Verdict Financial's report said that these factors were among the most important within this group of clients.
The study, titled ‘Mass Affluents: Product Holding and Preferences in the UK', found 49 per cent of non-mass affluents had chosen their bank on the criteria of having a longstanding reputation in the financial services sector, with this number growing to 61 per cent among mass affluents.
Verdict Financial principal analyst for retail banking, Daoud Fakhri, noted that despite showing a higher-than-average level of confidence in their finances, mass affluents were still relatively risk-averse when it came to day-to-day management of their money.
He also stressed that this attitude meant considerable difficulties for the new digital-only banks entering the market, which might additionally struggle with the unwillingness of consumers, on top of a lack of both brand awareness and a demonstrable track record.
"Mass affluents are a highly profitable demographic, as they are more willing to pay for bank accounts with added features and they present many cross-selling opportunities,"
"Although mass affluents may be harder to attract, it is well worth banks putting extra effort into bringing them on board, as the rewards will be considerable," Fakhri said.
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