One of the biggest unknowns in the retail banking market today is what kind of account mix will be most profitable for any single financial institution. As the gap between low, mid, and high net worth consumers widens, competition will naturally intensify for accounts that promise to bring with them high balances, prime credit quality, and better overall lifetime value. But what happens to the rest of the market?
That may promise to be an even more lucrative opportunity for financial institutions which are able to create product sets that resonate for the rest of the market. As we’re finding out – income levels are rising for fewer consumers, leaving a larger pool of consumers that may not offer big balances and big borrowing, but will continue to require financial services.
“Acquisition is still part of the game, but acquiring the right customers is more important than ever,” said Wes Nichols, CEO of MarketShare Partners, which is growing a stable of bank customers to address those very questions. “Analytics plays a very critical role in making sure you’re not only getting the right customers but keeping the right customers and getting rid of the undesirable customers.”
