Life Time Value of Affluent consumers is 50x greater than that of an average customer. Banks and Credit Unions that allocate the vast majority of resources to grow this segment will be rewarded with growth and profitability.
Trading Account Revenue is reported by the smallest of Banks to the largest of Mega-Banks and reinforces the tie between Scale & ROE. Small Banks suffer from lower ROE while larger Banks enjoy higher ROE.
Despite positive customer sentiment, Community Banks performance continues to lag that of Mega-Banks – with virtually all growth in the first half of 2011 won by banks with assets greater than $5 billion.