The private banking and wealth management industry is at a crossroads. Traditional models of wealth segmentation are breaking down as client needs, expectations, and behaviours evolve. In this episode of the PBWM Hotseat, David Wager, Associate Partner at Synpulse, explores how banks can adapt to the rise of the wealth continuum and what it means for delivering personalised value at scale.
The wealth continuum: beyond traditional segmentation
For decades, wealth management relied on clear segmentation lines: retail, mass affluent, high-net-worth (HNW), and UHNW. Yet, these tiers no longer capture the complexity of today’s clients. As Wager highlights, the wealth continuum acknowledges the blurred boundaries between segments, where client needs often overlap.
This shift forces banks to reconsider how they design services, allocate resources, and define client journeys. Instead of rigid asset-based segmentation, the focus must move towards a more fluid and responsive model.
From returns to goals: rethinking wealth conversations
Historically, wealth conversations were dominated by one measure: returns. Today, clients demand more. They seek advice that aligns with their personal and financial goals, from early retirement to sustainable investing.
This trend is driving the adoption of goal-based investing, powered by digital tools that allow banks to track, model, and personalise outcomes in ways traditional segmentation cannot achieve. The result is a new type of client engagement that values personalisation and long-term partnership over one-size-fits-all advice.
The cost-to-serve challenge
As banks expand services across the wealth continuum, they face a critical question: how to deliver personalised experiences while maintaining efficiency and profitability. Fully digital models may be cost-effective, but they often fall short for HNW clients who value human advisory and trust-based relationships.
Wager argues for hybrid models that combine digital convenience with human insight. By blending scalable technology with tailored advisory, banks can meet diverse client needs without eroding margins.
Moving beyond AUM: a new playbook for banks
One of the most pressing challenges highlighted in this episode is the continued reliance on assets under management (AUM) as the dominant segmentation metric. Wager contends that AUM fails to capture critical dimensions such as financial literacy, goals, interests, and risk appetite.
A new playbook is emerging—one that leverages data and behavioural insights to create holistic client profiles. This approach not only improves service quality but also helps banks retain clients as they move across wealth tiers.
The next battleground: digital wealthtechs and Gen Z
The mass affluent and emerging affluent segments are becoming increasingly competitive, fuelled by digital-first wealthtechs. These players are redefining expectations for transparency, accessibility, and speed.
At the same time, Gen Z investors are entering the market earlier, armed with greater financial literacy and a preference for digital-first engagement. For banks, this signals the urgency of reshaping service models to remain relevant across generations.
Key takeaways for banks
- Embrace the wealth continuum: move beyond rigid segmentation.
- Prioritise goal-based investing to align services with client life outcomes.
- Balance cost-to-serve with personalisation through hybrid models.
- Rethink segmentation metrics: include goals, risk appetite, and interests alongside AUM.
- Adapt to digital-first clients while sustaining high-value advisory for HNW.
Watch the full episode
🎥 PBWM Hotseat Episode 8: Wealth Tiers Are Shifting: Is Your Bank Ready?
Featuring David Wager, Associate Partner at Synpulse
