Vertical marketing has become increasingly widespread among leading banks looking for new ways to grow their wealth management businesses.
Some of the most developed vertical market programs are those targeting law firms. These programs employ specialized bank units to deliver integrated multi-level service offerings. These typically include specialized cash management and business banking packaged specifically for law firms, wealth management for principals, enhanced banking and specialty loans for associates and retail banking and pension services for employees.
There are several important benefits to the vertical marketing approach:
• It builds broader, deeper and more lasting relationships among businesses, owners and the bank
• It breaks down bank silos and moves internal bank operations closer to a client-friendly relationship-based model
• It improves product quality and customization by aligning specialized expertise at the bank with the distinct needs of a clearly defined market segment
• It helps differentiate the bank’s wealth management offering in a crowded and competitive marketplace
• As this market has evolved, we have seen the expansion of vertical marketing to diverse highly targeted segments based on industry, demographics, lifestyle and other criteria.
It is likely that the success of vertical marketing will continue to drive robust adoption of this approach among leading bank wealth management programs, and that these organizations will continue to identify new segmentation verticals to serve.