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UK's Rich Are Multi-Banked - Report
The UK’s rich, the wealthiest 1 per cent by liquid assets, are multi-banked according to a new report from Tulip Financial Research. HNW ...
The UK’s rich, the wealthiest 1 per cent by liquid assets, are
multi-banked according to a new report from Tulip Financial
Research.
HNW & Ultra HNW Bank & Fund Manager Ratings reveals that most of
this group have relationships with 3 or 4 of the main retail bank
brands, and many have additional links with other specialist
banks.
The report stresses the importance to the main retail banks of
identifying their high net worth and ultra high net worth
customers – those the report defines as having investible assets
of over £2 million ($3.4 million). These are the prime market for
savings and investment products.
Lloyds TSB tops the list with 174,000 HNW & Ultra HNW UK customer
relationships, which accounts for 40 per cent of all UK HNWs &
Ultra HNWs. Barclays, NatWest and HSBC are equal second, each
reaching around 30 per cent of this group.
The Leading Bank Brands Ranked
|
Base: All HNWs & Ultra HNWs: The UK’s wealthiest 1% |
HNW/Ultra HNW Relationships: 000s |
|
Lloyds TSB or Lloyds TSB Private Bank |
174 |
|
Barclays, Barclays Premier or Barclays Private Bank |
137 |
|
NatWest Bank or NatWest Private Bank |
137 |
|
HSBC Bank, HSBC Premier or HSBC Private Bank |
132 |
|
Abbey |
122 |
|
Halifax |
122 |
|
RBS or RBS Private Bank |
85 |
|
Nationwide |
80 |
|
Alliance & Leicester |
75 |
|
Bank of Scotland or Bank of Scotland Private Bank |
71 |
|
Egg |
66 |
|
ING |
61 |
|
First Direct |
42 |
|
Tesco |
42 |
|
Sainsbury |
19 |
|
Average No. of Relationships |
3.2 |
But the number of HNW & Ultra HNW relationships is only one
measure of a bank brand’s wealth marketing opportunity. The
other is the wealth owned by each relationship. Here ING tops
the list with an average liquid wealth per HNW/Ultra HNW
customer of over £6 million.
The Leading Bank Brands Ranked by
The Liquid Wealth of their HNW & Ultra HNW Customers.
|
Base: All HNWs & Ultra HNWs: The UK’s wealthiest 1% |
Average Liquid Assets: £ millions |
|
ING |
6.15 |
|
Bank of Scotland or Bank of Scotland Private Bank |
5.75 |
|
Egg |
5.45 |
|
RBS or RBS Private Bank |
4.95 |
|
NatWest Bank or NatWest Private Bank |
4.6 |
|
Sainsbury |
4.6 |
|
Barclays, Barclays Premier or Barclays Private Bank |
4.4 |
|
Abbey |
4.25 |
|
HSBC Bank, HSBC Premier or HSBC Private Bank |
4.2 |
|
First Direct |
3.6 |
|
Nationwide |
3.6 |
|
Lloyds TSB or Lloyds TSB Private Bank |
3.3 |
|
Halifax |
3.25 |
|
Alliance & Leicester |
2.95 |
|
Tesco |
2.95 |
The research shows ING’s success in building an ultra wealthy
customer base via a well promoted, easy access, high interest
savings account. Egg has held on to a similar customer base,
initially attracted by a similar launch platform.
“Britain’s wealthy each use a range of banks: most have
several current and savings accounts These valuable customers
appear more loyal than they are as they hold on to accounts
and rarely close them – bank accounts, even dormant ones, are
useful properties. Hence the big bank brands have many HNW
and Ultra HNW customers of which they are unaware, as bank
accounts often reveal little of their owners’ real wealth,”
said John Clemens, Managing Partner of Tulip Financial
Research.
Figure 3 below shows the current breakdown of liquid wealth
in the UK within the UK’s Wealthiest 5%. It is included to
provide additional background information on the HNW and
Ultra HNW wealth market.
Figure 3: Liquid Asset Ownership within the Wealthiest 5% of UK Adults
|
Base: The UK’s wealthiest 5% |
Average Liquid Assets: £s |
% of UK Liquid Assets Owned |
No. of individuals 000s |
|
The Mass Affluent (4% |
£144,000 |
15.5% |
1,880 |
|
HNWs (0.7%) |
£665,000 |
12.8% |
335 |
|
Ultra HNWs (0.3%) |
6,442,000 |
48.8% |
135 |
|
The UK Super-Rich |
£70,000,000 |
4.0% |
One |