NRI Papers
No.99 January 1, 2006
  Marketing for Newly Wealthy Clients: Targeting the Mass Affluent  
Hiroyuki MIYAMOTO, Masahiro MUTOH and Yoko OGIMOTO
      The mass affluent with net financial assets worth 100 to 500 million yen will attract increased attention in the future in the market of wealthy clients in Japan. Among these wealthy clients, approaches by financial institutions are not being adequately made to the "suddenly rich" who have become abruptly rich through inheritance.
      If the "suddenly rich" are compared with the "long-standing rich," they generally lack the knowledge and experience concerning investments and human contacts to consult regarding asset management. However, Japanese financial institutions have focused on private banking services for the super rich with net financial assets totaling 500 million yen or more and they have mostly used sales techniques that unilaterally recommend the products of their own companies. Consequently, these institutions have not been able to adequately meet the needs of the "suddenly rich."
      What is first required to obtain the trust of the "suddenly rich" is to create and provide "venues where it is possible to talk about money." After providing such venues, service should be provided from the client perspective independently from the product developing side to meet extensive needs ranging from finance, real estate and inheritance to business. If such an "independent one-stop agent" emerges, it would be possible to maintain and expand relationships with high net worth individuals (HNWIs) over many generations.
Contents
I Mass Affluent Clients Attracting Increased Attention
  1 The Super Rich and the Mass Affluent in Japan
  2 Appeal of the Mass Affluent
II Differing Needs and Behaviors among HNWIs
  1 Three Paths to Becoming a HNWI
  2 Differences between the "Long-Standing Rich" and the "Suddenly Rich"
  3 Limited Investment Knowledge and Inadequate Contacts of the "Suddenly Rich"
III Issues for Financial Institutions
  1 Private Banks and Mass Marketing
  2 Uncommon Trust Services
  3 Banks and Securities Companies Resting on Their Laurels
IV Strategy to Acquire the "Suddenly Rich"
  1 Early Continuous Approach and Pull-to-Push Switch
  2 Establishing Japanese-Version PB Model
  3 Acquiring Expertise through Alliances

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