What About the Overbanked?

I spent a great couple of days in San Francisco this week hearing from 72 FinTech companies at Finovate, stay tuned for my unique recap and thoughts from the largest Finovate ever.

As usual, there were several companies focused on improving access and service to the so-called underbanked– those who are priced out of traditional banking services, and those who simply opt out. This is a large market– several markets actually, and providing services people want and need at an affordable price is always good business.

But what about the Overbanked?

I’m talking about affluent and high net worth customers. Not because they don’t have sufficient access or because they are priced out of any markets. In fact, it’s just the opposite. Affluent customers have plenty of choices. Maybe too many. It is a market niche most financial institutions should be pursuing, but it’s hard to stand out to affluent customers.

Marketers hoping to reach the affluent need to tailor their offerings to be relevant. Messages about daily cash flow budgeting, for instance, can be powerful for the mass market and the underbanked. Every dollar matters and the timing of every dollar matters. It is worth spending time on activities that will save money by avoiding late fees and overdraft fees, for instance.

For many (though not all) affluent customers, it’s the other way around– they will often willingly spend additional money in order to save time. They will also spend money on unique experiences, as I have written about before.

(See Reimagining Bank Product Design in the Experience Economy)