A study from Consumer Financial Decisions, a financial-services marketing and research group, shows that only two out of ten mass-affluent customers have purchased an investment or insurance product from their banks or credit unions.
Additionally, those who buy insurance and investments from their banks are most apt to continue to work with that institution.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
It is also stated that savings and checking account balances tend to be higher for customers who buy insurance and investments at their banks with balances in checking accounts being 16% higher for clients who have bought products at their banks, compared with those who don’t.
And clients who use brokerage services at their banks also have savings account balances that are 85% higher than those of nonbrokerage banking customers.
The study pointed out that those consumers who buy investment and insurance products from the bank have on an average US$348,000 in investable assets which is 84% more than the financial assets held by other households and those who don’t buy those products where they bank only have US$189,000 in investible assets.
Further, the report revealed that investment and insurance companies are 34% more likely than other households to stay with their current financial institution, even if they receive better offers.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMoreover, selling the typical customer additional banking products did not yield meaningful increases in customer loyalty, it is shown.
Kenneth Kehrer, co-author of the study remarked, "Intuitively, many executives at financial institutions have believed in the strategic importance of the investment and insurance services customer. But until now there has not been a source of industry data to test this belief, and this appears to have led to under-investment by banks and credit unions in their investment and insurance services capabilities."
