Jono does Retail Banking

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December 2024

“The Mass Affluent Boom: Retail Banking’s Most Exciting Pivot Yet”

Instead of focusing solely on billionaires and large corporations, many retail banks have rolled out the red carpets for a new class of client – the “mass affluent”.

In May 2023, Barclays UK restructured its UK wealth business, combining its private banking entity under Consumer, Cards and Payments Division. HSBC UK unveiled its new Premier World Elite Mastercard with accelerated bonuses linked to airmiles. Furthermore, J.P. Morgan Chase UK acquired Nutmeg in 2021, a robo-advisor allowing for savings and investments to be app-managed under a “Save and Invest” tab.

These efforts are not a coincidence – they are deliberate, high-stakes investments aimed at transforming how banks engage with wealth. What was once exclusive to the ultra-wealthy – tailored advice, premium perks and seamless investment access – is now being delivered through everyday retail channels and sleek mobile apps.

Defining the Mass Affluent

The mass affluent aren’t millionaires, but they also don’t fit the commonly assumed archetype of mass retail banking customers. Typically, the mass affluent hold £100,000 to £1 million in investable assets or earn upwards of £75k a year.

One estimate from The Marketer suggests there are 613 million mass affluent individuals worldwide, accounting for nearly 40% of global household wealth (emarketer.com.). In the UK, roughly 1 in 7 brits qualify as mass affluent, containing nearly 2/3 of the country’s wealth (https://elsewhen.com/).

Why Banks are Shifting their Strategy Now

Economic pressure, untapped wealth, supportive regulation, powerful technology, and a rising generation of digital-first earners have all collided to create banking’s newest gold rush.

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“We think there is substantial growth for us in that segment.” — José Carvalho, HSBC UK (Reuters, 2024)
“The mass affluent boom is a significant opportunity — not just for clients, but for the broader economy.” — Sasha Wiggins, Barclays UK (Reuters, 2024)
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1 Reliance on Interest Rate-Linked Revenue

-> For retail banks, targeting the mass affluent isn’t just about chasing wealth – it’s also about adapting to economic pressures and industry shifts. Volatile interest rates as of recent, such as COVID-19, has made this model unreliable. Fee-based income from wealth management and investment products offers stability (Reuters)

2 Regulatory Support

-> The UK has a long-standing ‘advice gap’ given the high financial barriers for face-to-face advice – a result of increased compliance costs. Now, regulators are encouraging hybrid and technology-led models that can deliver personalised guidance at much lower costs.

3 Reliable, Scalable Technology

-> Highly personable and expensive relationship managers have been a staple of giving financial advice. Now, robo-advisors, AI-driven planning tools and app-based portfolio dashboards let banks deliver the same experience at a fraction of the cost.

As Curinos (2024) put it, banks are evolving into “comprehensive financial lifestyle partners” — merging wealth, wellness, and convenience in one place (Curinos, 2024).

4 Age: The Wealth Continuum

Unlike traditional wealth clients nearing retirement, many mass affluent consumers are young professionals still early in the earning potentials. In the U.S., about 40% of this group is under 55, compared with only 16% of ultra-high-net-worth individuals (eMarketer, 2023).

For banks, this means decades of potential cross-selling – mortgages, pensions, investments – all flowing through one digital ecosystem. As their wealth increases, access to more complex products and sophisticated financial planning becomes available – driving greater, fee-based revenue.

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