NRI Papers
No. 129 May 1, 2008
  New Wave of Retail Asset Management Business
— From Private Banking to Sales at Bank Branches —
 
Hiroyuki MIYAMOTO and Toshiyasu YONEMURA
   Against the recent trends of a growing number of baby boomers reaching retirement age, increasing numbers of inheritances and a rising number of entrepreneurs, the number of people who are classified as falling under the "affluent and mass affluent" segments where financial assets worth ¥ 50 million ~ ¥ 500 million are held has been increasing. In addition to enterprise owners who are targeted by financial institutions for private banking services, these people have a wide variety of occupations and have a strong "mass-like" characteristic.
   The number of people who have started investing at bank branches (both at bank branch counters and through visits by banks' sales representatives) and via online brokers has also been increasing. While these sales channels are regarded as important portals to asset management for novice investors, currently, financial institutions have not yet been ready to provide them with adequate services as they begin to accumulate experience in investment and want to be involved in asset management on a more extensive basis.
   Financial institutions should recognize that clients in each asset segment have different needs. Rather than dealing with these needs separately, financial institutions should develop standards based on the customized private banking services for high net worth individuals (HNWIs) and apply such standards to the affluent and mass affluent segments.
   For essential information on the affluent and the mass affluent as well as their families, and important points in approaching them, which we were not able to fully introduce in this paper due to limited space, please refer to the book entitled "Fuyuso Family (Affluent Families)" written by Hiroyuki Miyamoto and published by Toyo Keizai, Inc. in 2007.
Contents
I Factors behind Emergence of New Investors
II Issues Facing Financial Institutions in Dealing with New Investors
III Market Characteristics and Marketing Strategies by Financial Asset Segment
IV Standardization of Private Banking Service for Affluent and Mass Affluent Business

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