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Phoenix Synergistics: Channel Preferences of Mass Affluent Investors

November 2019 | In Person, Online, and Mobile | Asset Management Platforms –Traditional, Automated, and Hybrid | Non-traditional Providers; Role of Fintech
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The mass affluent sector continues to be an important segment for relationship expansion and revenue opportunities.  Although definitions vary, Phoenix Synergistics uses investable liquid assets of $100K to $1M as the criteria for examining these households.  Mass affluent customers have become even more attractive in recent years with the long-lasting bull market.  Future strategies, however, must consider such developments as climbing interest rates and market corrections.

The channel behavior and preferences of the mass affluent should be of particular interest to providers.  There is a “conventional wisdom” that younger consumers in this segment are attracted to technology-driven solutions – such as robo-advisors.  However, other findings emphasize the value and importance of face-to-face contact and interaction for certain financial needs. Hybrid advisors or platforms, often developed by fintech players, combine automation for investment transactions with a degree of personal advisory contact and are frequently being touted as the “next big thing” to serve the needs of this market.

Underlying all of these developments is the ever-growing usage of mobile channels and the implications this has for product design, communication tactics, and account acquisition.  This study examines the financial activity, behavior, and perceptions of the  Mass Affluent market.  The study features an Internet survey of 1,500 consumers age 18 or older with investable liquid assets of $100K to $1M.

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