Financial institutions slow to gain traction on cross-selling
Australian customers have little loyalty to their bank, with most splitting their investments and products across four or more financial institutions, a survey shows.
It's a position that's remained relatively unchanged since 2010, with consumers tending to spread their insurance, managed accounts and banking activity over numerous institutions, despite the fact the Big Four cover all bases with their product offering, according to Roy Morgan's June 2014 single source survey of around 50,000 people.
From the local market, the Commonwealth Bank (CBA) Group has the most loyal base, with customers accessing an average 4.1 institutions each, marginally below Westpac Group (4.6), ANZ Group (4.7), and NAB Group (4.9).
CBA once again led the charge on the cross-selling front, with 37.8 per cent of its customers purchasing multiple CBA products, followed by Westpac Group on 32.8 per cent, ANZ Group on 29.9 per cent and NAB on 27.8 per cent.
The survey found overseas-based institutions tended to attract a less loyal, but more upmarket or specialised customer base, led by Citigroup who had an average 6.5 customers,
ING Direct on 6.3 and HSBC on 5.8.
Roy Morgan's industry communications director Norman Morris said while there is considerable competition in the market, institutions are not making bounds on the cross-selling front.
"Reasons for this include lack of incentive for customers to consolidate, competition from specialist providers such as for superannuation and insurance, lack of product awareness, some concern regarding the spread of risk and staff that may not feel confident in a selling role."
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