Booz & company UK, yesterday released a wealth survey covering 56 population segments in the UK. The results were based upon demographic and wealth distinctions, overall establishing how the products and services offered by many current banks don’t adequately service those in the middle of the ‘wealth pyramid’.
Those in the middle of the ‘wealth pyramid’ have liquid assets between £100,000 and £1 million.
The report suggested there is £4.2 trillion of liquid wealth in the UK, of which only £2 trillion are held in asset classes that are targeted by wealth managers.
It indicated that there is opportunity for inroad with those affluent individuals in the middle of the ‘wealth pyramid’.
Booz believes that age will become an increasingly important factor to identify attractive segments as retirement households become a larger proportion of total population.
Results showed that 24.7% of the UK’s retirement households own £1.3 trillion of the country’s liquid wealth. The report forecast that within a decade this shall rocket to £1.7 trillion.
In summary, customer segmentation is a critical capability for banks seeking to grow in the U.K., as well as other developed nations.