PRESS RELEASE: New Study from Informa Research Services and Novantas Reveals Huge Gap

1st Jul 2010 15:37

Mass Affluent Consumers' Retirement Needs Neglected by Financial Institutions CALABASAS, Calif.--(BUSINESS WIRE)--July 01, 2010-- Informa Research Services, Inc., a subsidiary of Informa plc (LSE:INF), and Novantas LLC announce the release of a new report, the 2010 U.S. Consumer Wealth Study. This national study examines U.S. household asset allocation and preferences. The study shows which financial institutions are preferred and which types of investment and deposit products hold the majority of the wealth. "The study reveals many interesting trends regarding the distribution of retirement dollars among the mass affluent, emerging affluent, and affluent segments," said Wayne Cutler, managing director at Novantas. "The real 'eye-openers' were the findings that revealed how these consumers feel about investing their retirement savings at banks." In an environment where financial institutions are scrambling for deposits, the mass affluent sector seems to be severely ignored, according to the study findings. Results revealed that in a potential pool of more than $5.3 trillion in retirement savings held outside of structured retirement plans, banks only hold about $1.6 trillion and are at risk of losing even those deposits. "The survey results showed that only 10% of the mass affluent consumers view their bank as a viable solution for retirement investing," said Chad Watkins, manager of market intelligence at Informa Research Services. "Unless financial institutions change this consumer perception they are at risk of losing these deposits to brokerage and insurance companies." The new study is based on a national survey of nearly 1,000 respondents conducted in April 2010 via an online panel of U.S. households. Forty-six questions were posed, with findings and analysis forming the backbone of the report. Participants were at least 25 years of age and report at least $100K in investable assets (excluding assets invested in structured retirement plans). The 2010 U.S. Consumer Wealth Study was launched as a joint project between Informa Research Services, Inc., and Novantas LLC. To order or for more information on the 2010 U.S. Consumer Wealth Study, contact Chad Watkins at 800-848-0218 Ext. 48407 or visit the Informa Research Services website at www.informars.com. About Informa Research Services, Inc. (www.informars.com) Founded in 1983 and headquartered in Calabasas, California, Informa Research Services, Inc., provides the financial industry's most extensive array of market research and decision-support information. Conducting daily surveys of the retail, lending, and business products offered by more than 10,000 financial organizations nationwide, Informa currently supports the product pricing decisions of more than 6,500 clients, representing all 50 states, and including all of the top 100 financial institutions. Informa conducts the finest mystery shopping and market research studies available, delivering accurate and relevant measurements in the areas of employee sales and service, customer satisfaction, closed account research and retention, competitive performance, fair treatment, and compliance testing. About Novantas LLC (www. novantas.com) Novantas is the acknowledged leader in customer science and revenue strategy in the financial services industry. The firm specializes in investigating and interpreting customer needs, attitudes, and behaviors in ways that help companies to refine marketing decisions, customer strategies, and sales and service activities. In support of transaction/checking product evolution, Novantas has supported leading North American financial services organizations in product strategy, customer segmentation and needs assessment, risk modeling, and product design. CONTACT: Informa Research Services, Inc. James Royal Phone 818-880-8877 Fax 818-880-2069 SOURCE: Informa Research Services, Inc. Copyright Business Wire 2010 (END) Dow Jones Newswires July 01, 2010 10:37 ET (14:37 GMT)