Banks Should Not Ignore the Mass Market

December 12, 2023 — Boston

Cerulli recommends banks elevate their approach to servicing this demographic

Despite comprising nearly two-thirds of all U.S. households, the mass market represents banks’ least frequently targeted demographic. According to the latest Cerulli Edge—U.S. Asset and Wealth Management Edition, just 16% of firms offer an investment or wealth-related service tailored specifically to these households with less than $100,000 in investable assets.

While the mass market demographic may not be considered a ‘core client,’ it is still a notable source of customers for banks, leveraging traditional banking offerings such as savings, checking, lending, and credit services. Such offerings typically include a self-directed brokerage platform with perks such as zero-commission trades and access to educational content. The service delivery model of providers in this space is becoming highly digitized and automated with minimal access to human advice providers, and often centers around an online dashboard.

The services offered on these platforms usually are adequate for those who have less than a few hundred thousand dollars in assets and are in an accumulation phase of their financial journey. However, as their wealth accumulates and their needs become more complex, they often require more services from banking providers. Cerulli believes that banks willing to secure relationships during the early phase of a client’s financial life may be well positioned for future upward internal referrals should the client see a change in their financial situation.

“There is an opportunity for banks to create lasting relationships with mass market clients in the accumulation phase,” says Matt Zampariolo, analyst. “Banks that create a differentiated, engaging client experience will be well positioned to retain clients as they cross into higher wealth tiers.”

As banks look ahead to their sources of organic growth, Cerulli recommends that banks evaluate their ability to onboard clients across a variety of wealth tiers in order to enhance service efficiencies and position themselves for increased client retention amidst shifting wealth demographics.

“By defining multiple wealth segments as core clients, banks are better able to align their capabilities and offerings with the needs of a specific client type. These differentiated service models will provide their clients with an elevated, precise experience that bodes well for future wealth management relationships,” says Zampariolo. “Banks will, at the same time, avoid overserving or underserving clients, enhancing productivity and profitability gains,” he concludes.

Looking for More Information?

Let's Connect

Looking for More Information?

For additional information regarding this material or to get in touch with our press team, please submit the below form.

We use cookies to improve your site experience, distinguish you from other users and support the marketing of our services. These cookies may store your personal information. By continuing to use our website, you agree to the storing of cookies on your device. For more information, please visit our Privacy Notice.