By far the most prominent lender in this area is DBS, which between its affluent Treasures business and its POSBank subsidiary (formerly Post Office Savings Bank) owns 53 per cent of the market, according to a new study from intelligence provider RFi.

However there is still much wealth to be tapped. The report showed that 40 per cent of the mass affluent retail banking market do not have a priority or private banking relationship.

Of those who do have a priority banking relationship, 60 per cent hold this with their main financial institution, indicating a strong relationship between their retail bank and their priority bank, said the report.

The remaining 40 per cent that do not hold their priority banking relationships with their main financial institution, are potentially seeking out priority programs that best suit their needs, regardless of the bank.

DBS Treasures holds the highest market share of priority banking relationships in the market with 18 per cent share, as well as the equal highest share of ‘main priority banking relationship’ status, with a 24 per cent share.

Standard Chartered has an equally high share of the main priority bank status once their Priority and Preferred program shares are combined.

Regarding the benefits they receive from their priority program, overall priority banking customers consider priority branches to be the most highly valued. However, foreign bank customers tend to value wealth management advice and relationship management the most.

Mass affluent customers consider themselves likely to stop using around a quarter of the credit cards currently in the market during 2012, although only a tenth are considered very likely to be at risk.

The highest share of mortgages by both number and value of loans is held by DBS, with a 24 per cent share of the number of mortgages and a fifth share of the value. Standard Chartered and HSBC have a higher share by value than by number, indicating they are taking on higher value loans than their competitors.

There is potential for significant growth within the mass affluent wealth management sector, with the finding that 47 per cent of mass affluent retail banking customers did not have a financial plan in place with a financial advisor in 2011.

Residential property tends to account for over a third of mass affluent investors’ wealth, with managed funds and domestic shares accounting for around a fifth each, said the report.

RFi’s Asia Pacific Research Director, Sheree Rudinger, said; “With over 40 per cent of the mass affluent segment not currently members of either a priority or private banking program, there is significant opportunity for banks to grow their market share through new acquisition. Internal cross-selling has worked well for some of the larger players in the priority banking space, and external acquisition can focus on the benefits that are most valued by current priority banking clients; priority banking branches and wealth management advice”.