These changes have affected the needs of wealth management clients, but many firms are just beginning to adjust.Those who understand what products and services to offer, and who develop a better approach to segmenting customers, will have a competitive edge.Based on a study of 56 population segments in the United Kingdom, this report shows how the products and services offered by many current banks, financial advisors, and insurers don't adequately serve those in the middle of the "wealth pyramid" — those with liquid assets between £100,000 and £1 million.For the good of their customers and themselves, wealth management firms can develop a more sophisticated approach to segmentation, and to the design of compelling products and services. Show transcript Affluent but forgotten The demographic opportunity for wealth management in the U. Contacts About the authors Beirut Peter Vayanos Partner 961-1-985-655 peter.vayanos @com Chicago Ashish Jain Partner 1-312-578-4753 @com London Alan Gemes Senior Partner -3290 alan.gemes @com Victor Koss Partner -3738 @com Jorge Camarate Principal -3461 jorge.camarate @com Melbourne Suzanne Lyman Principal 61-39-221-1910 suzanne.lyman @com Mumbai Jai Sinha Partner -1102 jai.sinha @com São Paulo Ivan de Souza Senior Partner -6368 souza @com Shanghai Sarah Butler Partner -9800 sarah.butler @com Sydney Peter Burns Partner 61-2-9321-1974 peter.burns @com Tokyo Vanessa Wallace Senior Partner 81-3-6757-8600 vanessa.wallace @com Zurich Carlos Ammann Partner 41-43-268-2144 carlos.ammann @com Andreas Lenzhofer Partner 41-43-268-2156 andreas.lenzhofer @com Victor Koss is a partner with Strategy& based in London.For example, they can develop financial-services instruments for people with investment properties, or financial management products for people in retirement who need help with “de-cumulation” of assets. * The definition of affluence is not universal and varies by organization as well as geography.Customer segmentation is a critical capability for banks seeking to grow in the U. In this report, we have considered affluence to start at £100,000 of investible assets or about US0,000. For instance, it is not unusual to find wealth managers using a considerably higher threshold (such as US0,000) as an indicator of affluence.
Many banks overlook the services they could provide to people whose wealth is in real estate, versus the services that apply to people invested in annuities.Populations are aging, defined benefit pensions are disappearing, and investment returns are challenged.These changes have affected wealth management clients, but firms are just beginning to adjust.They need a kind of help that is new, both to them and to much of the financial-services industry.Most wealth management firms have not yet stepped in to provide that help.