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When One Brand is not Enough

Increasingly, leading commercial banks are adopting multiple sub-brands in marketing to affluent consumer segments. It’s now relatively common to see distinct brands targeting the UHNW, HNW and mass affluent markets.

To us, this movement towards separate brands is an appropriate and positive evolution of bank wealth management services for several reasons:

• Affluent segment delivery models naturally break into markets by AUM. Distinct branding clarifies the different models and helps align prospective clients with the one most appropriate for them.

• An effective affluent offering includes a holistic and integrated set of products and services, typically with features, benefits and advantages tailored to a specific market’s needs and preferences. Brands reinforce the unity of the product set and the promise of the special privileges reserved for that brand segment’s clients.

• The key attributes of an affluent brand are expressed through a sense of exclusivity and reward based on the significance of the relationship. Distinct branding defines the boundaries of that exclusivity and recognizes clients for the value of their relationship with the institution.

We expect the movement towards separate branding to continue particularly as banks accelerate development of more clearly defined and targeted offerings targeted to separate affluent segments.