Banks looking to boost their profits are missing the boat on a big opportunity: marketing investment and insurance products to mass-affluent households. According to a study from Consumer Financial Decisions, a financial-services marketing and research group, only two out of 10 mass-affluent customers — those with $100,000 to $1 million in financial assets — have purchased these products from their banks or credit unions.
The study found that customers who purchase investment and insurance products where they bank have, on average, $348,000 in investable assets, 84% more than the financial assets held by other households. It also found that investment and insurance customers are 34% more likely than other households to stay with their current financial institution, even if they receive better offers. Selling the typical customer additional banking products, in contrast, did not yield meaningful increases in customer loyalty, the research found.
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