Growing a new niche in retail banking

The growing number of well-to-do consumers has already captured the attention of the retail market, and now banks are getting on board: In early September 2007, HSBC announced the roll out of HSBC Premier — offering borderless banking and preferential services — which they describe as “the first truly global personal banking service for the world's…mass affluent,” a demographic group that is variously defined as possessing between US$100,000 and $1 million in liquid assets and that has demonstrated a taste for luxury and exclusivity. Another early entrant to the field, Citibank, describes Citigold, which offers exclusive services and rewards to mass affluent customers, as a “premium banking relationship…designed to give you — and your finances — the attention you deserve.”

Mass affluent customers are mobile, sophisticated, and extremely busy. As such, they demand financial advisors with specialized knowledge, they want the ability to schedule meetings with these advisors flexibly and easily, and they put a premium on privacy. As one of several key findings of a Booz Allen Hamilton study of retail banking best practices shows, top-performing banks around the world are tailoring their services across all channels to adapt to the preferences of this small but increasingly influential segment.

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