This report look at the various ways private banks in Australia can segment their client bases to extract value. Segmentation factors such as customer-value, life stage, sophistication and geographic situation are all explored and the merits of each are analysed. The analysis is backed up by comments from high net worth individuals pertaining to their needs and preferences.

• The report analyses the reasons behind segmentation of a private banking portfolio, backed up by interviews with senior private bankers and HNWs
• The report analyses five segmentation scenarios; customer value, life stage, geographic situation, sophistication and source of wealth
• The report draws conclusions based upon HNW sentiment and the findings of segmentation analysis

It can be argued that HNW clients of a private bank have already been segmented and therefore the bank's job is done and a higher value can be extracted. However, would it not make more sense for private banks to further segment this HNW clientele just as the retail base is segmented?

Research of private banking websites will show that they all speak of individual attention and tailored services. So if banks already know this, shouldn't they be looking to segment their client bases?

As the Australian private banks seek to better service their clients and to build their propositions around relationships, here are two possible answers to consider namely genuinely tailored responsive service and two-way client defined communication.

• Find out what the benefits are of segmenting a private client base and how to go about segmentation
• Find out which segmentation scenario is best for your private bank
• Find out what high net worth clients want from their private banking institutions and how this translates into segmentation