The Untapped Financial Consumer

Report Summary

The Untapped Financial Consumer

Aite Group discovers "Ivy League Moms," a lucrative new consumer segment, with estimated size of almost 10 million US households and investable assets of $6.5 trillion. The report advises financial firms on acquisition and retention strategies for this un

Boston, MA, May 17, 2006 – In a new report, The Untapped Financial Consumer, Aite Group discovers a new consumer segment, one so lucrative that no financial institution can afford to ignore it. The research is based on a new U.S. trend: Highly-educated women who are leaving the workforce to raise children. This study is the first to explore the issue from a marketing perspective.

Why does this segment matter to financial institutions? Aite Group estimates that it represents almost 10 million households in the United States and accounts for a total of US$6.5 trillion in investable assets. These women are affluent; they make financial decisions and manage investments; and they influence their high-net-worth spouses. They are on their way to more wealth as they re-enter the workforce. They are young and loyal, and a firm can hold on to them for a long time. They are connected and refer other attractive clients. Finally, they are candidates for many financial products and services and prime cross-selling targets.

But these women have distinct needs and defect when a financial firm doesn't meet them. The report examines their service demands, recommends financial products, and advises on channels and messages for marketing to this segment. The study also prescribes an organizational change to ensure firms' ability to spot other untapped consumer segments.

"There is a new player in the U.S. consumer market - the "Ivy League Mom" segment," notes Ekaterina O. Walsh, Ph.D., Research Director with Aite Group and author of the report. "The name reflects the intellectual prowess of these highly-educated women. They are unique and demanding - but lucrative for any financial institution. While all marketers must take notice of Ivy League Moms, it's especially important that financial services firms do. These consumers are their dream come true."

The report includes insights about the following financial institutions: Bank of America, Charles Schwab, Chase, Citi, Citizens Bank, Discover Card, EverBank, Fidelity Investments, ING Direct, J.P. Morgan, Key Bank, Liberty Mutual, MBNA, Putnam Investments, South Carolina Bank and Trust, Sovereign Bank, SunTrust, TIAA CREF, T.Rowe Price, USAA, Vanguard, Wachovia, Washington Mutual, Wells Fargo, Winchester Co-operative Bank, Winchester Savings Bank, and Union National (Mount Joy, PA) Community Bank.

The study also discusses the following companies that work with financial institutions:, SunGard, SEI Investments, UPromise, and Yodlee.

This is a 102-page Impact Report. Clients of Aite Group's Retail Banking and Wealth Management services can download the report.

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