SAN FRANCISCO—The behaviors and demographics of four segments of wealthy consumers is examined in a new study from Javelin Strategy & Research, which is projecting that one-in-every-10 wealthy consumers is likely to switch financial institutions in the next 12 months.
According to Javelin, that means 57 million bank products and services, $2.3 trillion in investable assets, and $348 billion in deposits are at risk, and that’s just for those with $100,000 to $150,000 in annual income.
“Staying up-to-date on their habits, preferences and attitudes is critical to keep their assets in-house,” said Javelin in its new report, “The Digital Approach to Affluent and High Net Worth Customers.”
“The digital banking platform is the key to servicing affluent and high net worth customers, as they are increasingly using digital channels to open and service their accounts,” the report states. “Wealthy customers gravitate toward online banking tools, at twice the rate of in-person banking on a weekly basis (68% to 27%).”
Javelin’s Mary Monahan, director of Mobile, said it’s important for FIs to understand a consumers’ entire portfolio of accounts across institutions. “Wealthy customers often have credit cards with over $20K in annual spending, but many of these cards are not located at the primary bank – this is a huge lost opportunity,” she said.
The new report analyzed consumer data and preferences from 6,000 U.S. adults and financial institutions where these consumers have a primary banking relationship.
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