Banks' marketers are failing to capitalise on financial product cross-selling opportunities with existing customers.
That’s according to the latest DMA/fast.MAP Financial Services tracking study, which surveyed 2,494 UK adults. The findings showed that consumers hold an average of just two financial services products with their main bank, with 65% holding a current account and 50% holding a savings account.
The two most popular products held by consumers with financial services providers other than their main bank were found to be home contents (39%) and building insurance (33%). Just one in 10 (9%) say they hold their mortgage with their main bank, the figures showed.
However, the survey revealed that despite shopping elsewhere than their main bank for the majority of their financial products, consumers still rate the service they receive from their main bank highly. On a satisfaction scale of one to 10, the top 14 retail banks scored an average score of 7.8, with Virgin Money (8.67), Co-op (8.55) and First Direct (8.41) leading the pack.
Ian Holmes-Lewis, a member of the DMA Financial Services Council and head of market for ReMark Group, one of the report's contributors, commented:
"Consumers have complex relationships with their banks. They're largely loyal in terms of their current and savings accounts, with only 12% considering switching to another provider. However, their loyalty to their main bank doesn't always extend to purchasing other services.
"The fact that people hold just two products with their main bank shows that banks are missing out on crucial cross-selling opportunities. There is intense competition between the main high street banks, which provides a strong incentive to fight for greater market share. Banks need to focus on persuading their customers from shopping elsewhere."