Banks and Credit Unions to Increase Insurance and Investment Product Marketing
Banks are still feeling the pain from new legislation that limits the amount of money they can charge customers for some services. In addition, some banks have withdrawn from the mortgage market. These changes in the industry have left operators looking for new product lines, especially in investments and insurance.
Currently only 2 out of 10 affluent consumers are buying any type of investment or insurance products through their banks. The findings from the recently published “Value of an Investment and Insurance Customer to a Bank” study, also indicate that these customers have $348,000 in investable assets. In addition, once customers begin to move their investment and insurance business to banks, they are 34% more likely than other customers to stay with the institution. As a result, John Gies, vice president and national sales manager, Prudential Annuities, says that “banks and credit unions have a significant opportunity to redeploy resources and cross sell strategies.”
Other report highlights regarding investment and insurance product customers include:
- These customers maintain checking account balances that are 16% higher than other customers
- These customers maintain savings account balances that are 85% higher than non-brokerage customers
- These customers hold twice as many credit cards and use 11% more remote banking products than other customers
All of these factors make these particular customers good prospects. Look for banks and credit unions to begin actively marketing investment and insurance products as a way to reach and retain more affluent clients.[Source: Investment and Insurance Products Offer Opportunity. PrudentialFinancial.com. 5 Mar. 2012. Web. 12 Mar. 2012]