Prudential To Banks: Get Marketing Help

In the report, consultants at 3C Financial Partners Inc., Manhattan Beach, Calif., a managed accounts firm, note that many banks have been focusing on serving customers who have more than $5 million in assets. Meanwhile, moderately affluent customers with $1 million to $5 million in assets get far less attention but generate about 71% of the $300 billion in annual revenue available through the “high-net-worth” market, the consultants write.

Banks may hate the idea of selling outside investment products, but appealing to moderately affluent customers by offering them a mix of homegrown products and outside products could lead to a big increase in investment sales and overall profit margins, the 3C consultants argue.