Banking Uncovered Episode 26: Inside America’s high net worth households: Understanding the $50 trillion opportunity

High-Net-Worth (HNW) households account for one in 10 US households, yet they control a disproportionate share of the nation’s wealth. According to RFI Global’s MacroMonitor, the largest ongoing study of US household financial behaviour, HNW households hold 69% of all financial assets and 74% of investable assets, amounting to $50.2 trillion.  So how can financial institutions capture this opportunity?  In this episode of Banking Uncovered, host Charles Green and Luke Allchin, RFI Global’s US Research Director, explore what the data reveals about America’s high-net-worth households: how their wealth has been built, where it is held, and how their needs and expectations are evolving. They discuss how HNW investors allocate their wealth and the practical implications for banks and wealth providers. Luke explains the growing preference for mutual funds as a risk-diversification tool, alongside the recent surge in certificates of deposit (CDs) as HNW households seek more certainty during periods of elevated rates.  They focus on the Great Wealth Transfer, with an estimated $45 trillion set to move from US baby boomers over the next decade. Luke and Charles discuss why this transfer is already underway, the multiple inflection points at which assets are at risk of leaving incumbent providers, and why engaging spouses and heirs early is critical to retention.  They look at how AI is increasingly used as a first stop for financial discovery, offering speed and guideance, but why human advisors remain essential for complex decisions and long-term strategy. The conversation explores how banks and wealth providers should design hybrid advice models that combine the convenience of AI with the assurance of professional guidance.     Topics discussed include:   How HNW individuals invest, and how this has changed in response to market volatility The Great Wealth Transfer, and the $45 trillion opportunity this represents How and why HNW consumers use AI first as a soundboard, then seek human validation for big moves The role of risk-diversified mutual funds versus CDs as interest rates decline Designing hybrid advice models that marry convenience with compliance, and the need for more female advisors Tax-efficient withdrawals from retirement accounts and the right amount to sustain lifestyle without depleting capital Educating pathways that raise financial literacy for heirs before assets move   And much more…  Key insights include:   HNW households hold 69% of all financial assets and 74% of investable assets in the US 88% of HNW households have a formal financial strategy, prioritising retirement, estate planning and tax efficiency As rates fall, CDs lose relative appeal; diversified portfolios regain momentum - especially for older HNW investors focused on preservation $45 trillion is set to move from Boomer households in the US in the next decade; 31% of HNW households will transfer wealth Trusts and estates are rising now, with around 1 in 10 older consumers plan to establish new structures within 12 months  And much more… 

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