Banks and financial institutions appear to benefit from selling investment and insurance products to existing account holders.
According to a survey released this week by Prudential Financial, customers who purchase these products from their respective financial institutions have on average $348,000 of investable assets. That figure is 84 percent more than the average asset values held by other banking customers. "Overall, banks and credit unions have a terrific opportunity to market to households likely to buy investment and insurance products," said John Gies, vice president and national sales manager at Prudential. "While many of these institutions are focused on banking products and services as their primary source of fees, a potential strategy for boosting profits … is hiding in plain sight." These customers are also 34 percent more likely than other account holders to remain with their current financial institution. However, only about 20 percent of these affluent investors have purchased such products from their bank or credit union. This is an important finding in regards to consumer credit risk management
, as it points to the value and revenue potential of existing bank customers.