Stores & Success Metrics 2023: How to Compete for Share of Wallet Given Industry Consolidation and Asset Concentration Insight Module
Order Report - Stores & Success Metrics 2023: How to Compete for Share of Wallet Given Industry Consolidation and Asset Concentration Insight Module
Available for license as an individual report: November, 2023
Report Overview
This report analyzes retail financial services firms across a variety of metrics including share of wallet (SOW), customer trust, intent to recommend and intent to invest more. The report identifies industry market leaders on these and other metrics. For example:
- Overall, industry average SOW at the national level is 38%, down from 42% in 2020
- On average SOW across all customers, Morgan Stanley is #1 with 55%, Edward Jones is #2 with 51% and Fidelity is #3 with 50%.
- Bank of America Merrill NET reaches 24% of U.S. households with saving and investing relationships, more than any other firm.
- Fidelity is No. 1 in reach with millionaire households, having relationships with 38% of them.
- Bank of America leads in integration of banking and investing, with 26% of its customers having investment accounts
Additionally, the increasing number of relationships household have with financial service providers, makes it more difficult for firms to achieve high SOW. The average household has 2.5 saving and investing relationships, up from 1.4 relationships in 2012. And the average $1-million-plus household has 3.6 saving and investing relationships, up from 2.8 in 2012. The report looks at two ways to increase SOW - serving as the main source of retirement advice (MSRA) and delivering a combination of service and advice to customers.
Key Findings
- As more consumers have more saving and investing relationships than ever before, competition for the consumer wallet (SOW), especially among affluent households, is intensifying.
- The increasing number of relationships makes it harder to achieve high share of wallet (SOW). Two ways to increase SOW are becoming the Main Source of Retirement Advice (MSRA) and ensuring customers receive some coverage of service and advice.
- Bank of America Merrill NET is #1 in reach into U.S. households with Fidelity and JPMorgan Chase gaining. Fidelity is #1 in both reach and asset share with millionaires, due to diversified customer experiences.
- Both high trust and high likelihood to recommend slipped year over year. High likelihood to invest more fell at the national level, and precipitously so for households $1M+.
- The more account types a firm has, the more opportunities that exist to build relationships with its customers. An analysis by account type reveals firms that excel at cross-selling and penetration for certain offerings.
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Sample Report Pages
Table of Contents
Methodology
Executive Summary
Key Findings & Implications
Favorite Statistics
Related Research
Key Findings
1 : As more consumers have more saving and investing relationships than ever before, competition for the consumer wallet (SOW), especially among affluent households, is intensifying.
Exhibit 1.1 — Number of Saving & Investing Relationships: National, by Year
9
Exhibit 1.2 — Number of Saving & Investing Relationships, Full Range: National, by Year
10
Exhibit 1.3 — Average Number of Saving & Investing Relationships: by Investable Assets, by Year
11
Exhibit 1.4 — Average Number of Saving & Investing Relationships: by Store, by Year
12
Exhibit 1.5 — Number of 4+ Saving & Investing Relationships: by Store, 2022
13
Exhibit 1.6 — Serve as Primary Store: Industry Average, by Year
14
Exhibit 1.7 — Serve as Primary Store: by Store, 2022
15
Exhibit 1.8 — Serve as Primary Store: by Store, by Year
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Exhibit 1.9 — Customer Relationships by Level (Serve as Primary, Secondary, Other): by Store, 2022
17
2 : The increasing number of relationships makes it harder to achieve high share of wallet (SOW). Two ways to increase SOW are becoming the Main Source of Retirement Advice (MSRA) and ensuring customers receive some coverage of service and advice.
Exhibit 2.1 — Mean Share of Wallet: by Investable Assets, by Year
18
Exhibit 2.2 — Mean Share of Wallet: by Store, 2022
19
Exhibit 2.3 — Mean Share of Wallet, Main Source of Retirement Advice (MSRA) vs. Not MSRA: by Store, 2022
20
Exhibit 2.4 — Main Source of Retirement Advice: by Store, 2022
21
Exhibit 2.5 — Connections Between Main Source of Retirement Advice and Primary Store, 2022
22
Exhibit 2.6 – Mean Share of Wallet: by Self-Reported* Inside Advice® Grid Category, 2022
23
Exhibit 2.7 – Mean Share of Wallet: by Self-Reported* Inside Advice® Grid Category, by Investable Assets, 2022
24
Exhibit 2.8 – Self-Reported* Coverage on Inside Advice® Grid: by Store, 2022
25
Exhibit 2.9 — Consumer Perception* on Inside Advice® Grid by Store: All Customer Types, 2022
26
3 : Bank of America Merrill NET is #1 in reach into U.S. households with Fidelity and JPMorgan Chase gaining. Fidelity is #1 in both reach and asset share with millionaires, due to diversified customer experiences.
Exhibit 3.1 — Reach in Saving & Investing Relationships, Top 10 Stores: National, by Year
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Exhibit 3.2 — Reach in Saving & Investing Relationships, Other Stores: National, by Year
28
Exhibit 3.3 — Top 5 Stores for Reach, by Investable Assets, by Year
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Exhibit 3.4 — Share of U.S. Consumer Investable Assets, Top Stores, by Year
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Exhibit 3.5 — Share of U.S. Consumer Investable Assets, by Investable Asset Ranges, Top Stores, by Year
31
Exhibit 3.6 — Share of Wallet Average and Ranges among Customers With $1M+ for Top Stores & Subsidiaries in $1M+ Asset Share, 2022
32
Exhibit 3.7 — Coverage of Customers $1M+ (%) in Robust Customer Experience Categories (Levels 2 & 3), by Top 6 Stores for Share of Assets & Reach in $1M+ Investable Assets, 2022
33
Exhibit 3.8 — Coverage of Customers $1M+ (M Households) in Robust Customer Experience Categories, by Top 6 Stores for Reach & Share of Assets in $1M+ Investable Assets, 2022
34
4 : Both high trust and high likelihood to recommend slipped year over year. High likelihood to invest more fell at the national level, and precipitously so for households $1M+.
Exhibit 4.1 — Trust, Top 2 Box (9-10): National, by Year
35
Exhibit 4.2 — Trust, Top 2 Box (9-10): by Investable Assets, by Year
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Exhibit 4.3 — Trust, Top 2 Box (9-10): by Generation, by Year
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Exhibit 4.4 — Trust, All Levels: by Store, 2022
38
Exhibit 4.5 — Trust, Top 2 Box (9-10): by Store, by Year
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Exhibit 4.6 — Likelihood to Recommend, Top 2 Box (9 -10): National, by Year
40
Exhibit 4.7 — Likelihood to Recommend, Top 2 Box (9 -10): by Investable Assets, by Year
41
Exhibit 4.8 — Likelihood to Recommend, All Levels: by Store, 2022
42
Exhibit 4.9 — Likelihood to Recommend, Top 2 Box (9 -10): by Store, by Year
43
Exhibit 4.10 — Likelihood to Invest More, Top 2 Box (9 -10): National, by Year
44
Exhibit 4.11 — Likelihood to Invest More, Top 2 Box (9-10): by Investable Assets, by Year
45
Exhibit 4.12 — Likelihood to Invest More, All Levels: by Store, 2022
46
Exhibit 4.13 — Likelihood to Invest More, Top 2 Box (9-10): by Store, by Year
47
Exhibit 4.14 — Hearts & Wallets Loyalty Score: by Store, 2022
48
5 : The more account types a firm has, the more opportunities that exist to build relationships with its customers. An analysis by account type reveals firms that excel at cross-selling and penetration for certain offerings.
Exhibit 5.1 — Percent of Customers With Checking or Saving Account at Store: by Store, 2022
49
Exhibit 5.2 — Percent of Customers With Investing Accounts (Current/Former Employer-Sponsored Retirement Plans, Rollover/Contributory IRA or Taxable Brokerage) at Store: by Store, 2022
50
Exhibit 5.3 — Attitude “Being able to bank and invest at the same firm appeals to me” by Store, 2022
51
Exhibit 5.4 — Percent of Customers With Taxable Brokerage Account at Store: by Store, by Year
52
Exhibit 5.5 — Percent of Customers With Employer-Sponsored Retirement Plans at Store: by Store, 2022
53
Exhibit 5.6 — Active vs. Terminated Employer-Sponsored Retirement Plan Participants: by Store, 2022
54
Exhibit 5.7 — Likelihood to Invest More Among Employer-Sponsored Retirement Plan Participants:
by Store, 2022
55
Exhibit 5.8 — Percent of Customers With Health Savings Accounts at Store: by Store, 2022
56
Exhibit 5.9 — Estimated Market Share of Health Savings Accounts, Account Basis: 2022
57
Exhibit 5.10 — Percent of Customers With 3+ Accounts Types at Store: by Store, 2022
58
Data Dictionary
Appendix
Glossary
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