 |
 |
For many years, financial institutions have relied on computers and
electronic communication networks for processing and operations. The Internet is
rapidly bringing those same efficiencies to the product side, thus enabling
companies to tap into huge new markets made up of customer segments that were
previously not economic to handle.
But along with these expanded markets, the Internet is also creating some
considerable challenges to financial service organizations.
With the proliferation of online services, customer assets can now be moved
with the click of a mouse from one institution to another, and with the assets
go the bonds of traditional customer loyalty. The expanding range of online
services is also making it easy for non-financial institutions to market to
customers who were traditionally the franchise of the banks, brokerage firms,
and other financial institutions.
In this environment, the building of strong relationships with all of an
institution's customers - not just with those considered "high net worth" -
has become the primary goal. With strong customer relationships based on
superior, branded online financial services such as advice and planning,
institutions can capture and hold a far greater amount of customer assets, which
is the key to higher value added services - and higher profitability.
Employing online product strategies to win the battle for customer assets
requires a flexible, customizable platform that a financial institution can
integrate easily into its existing product, branding, marketing and competitive
strategies. Successful online financial services must also be able to support
each institution's Financial Advisors and other marketing personnel, providing
them with the necessary options and features to efficiently and profitably
service each of their different customer segments.
For capturing assets, facilitating frequent customer contact, enabling
informed, highly focused marketing - and differentiating an institution clearly
from its competition - the online financial planning and advice platform offered
by DirectAdvice is clearly the most attractive and promising solution.
User Demographics
As the table below indicates, of the approximately 100 million households
within the U.S., approximately 63 million are potential consumers for online
financial planning and advice. Forrester Research estimates that less than 3%
have traditional full-service Financial Advisors, while less than 2% obtain
advice online. These numbers reflect substantial and growing demand for the
DirectAdvice platform. Worldwide, there are an estimated 339 million households
that are potential consumers for the type of online financial planning that
DirectAdvice provides.
 |
|
 |
| Demographics - U.S. Target Markets |
| Market Segments |
Income
|
Age
|
Assets
|
Web Access
|
U.S. Households |
| Lower Income & Younger Households |
<35k |
<25 |
Few |
None |
41 Million |
|
|
| Off-line Middle Class |
>35k |
25+ |
<500k |
None, yet. |
22 Million* |
| Online Middle Class |
>35k |
25+ |
<500k |
Yes |
27 Million* |
| Affluent Investors |
>35k |
25+ |
>500k |
Yes |
14 Million* |
|
Target Market
* 63 million U.S. households
Industry Survey
DirectAdvice commissioned a national survey of the nation's top banks, insurance companies and brokerage firms. The purpose of the survey was to identify the current dominant trends with which these institutions were dealing in marketing financial services and products to their retail customers.
Learn more about the survey.
|
|
