Core Millionaires, American households with investable assets of $1 million to $10 million, are the fastest-growing, largest and most profitable segment of the wealth market, McKinsey & Co. said Wednesday in a new report.
At present, there are 4.2 million Core Millionaire households in the country, according to the McKinsey report, “A Tale of Two Millionaires: The Best of Times for Private Banks to Look Beyond the Ultra-High-Net-Worth Market.”
U.S. private banks, it said, could return to levels of asset growth and profitability they enjoyed before the onset of the financial crisis serving UHNW clients by widening their focus to include this segment.
McKinsey said that its 2011 Global Private Banking Survey showed that U.S. private banking net flows had been flat for several years, while total profits had declined by half since 2007. Growth over the coming decade “will come from new client segments with different needs,” it said.