Banks could pull in more customers if they offered insurance, survey suggests

 
Hayley Kirton
Follow Hayley
Silver Money
"I'd like to deposit this, extend my overdraft and cover myself for my skiing holiday, please" (Source: Getty)

A survey released today contains a potential solution for banking bosses worried about falling customer numbers: start offering insurance products.

The figures from marketing specialist Collinson Group found consumers typically hold four different insurance products from three different providers .

Almost two thirds (63 per cent) are sick of the split and would much prefer a one-stop-shop to fulfil their financial needs, and Collinson Group commercial director Mark Roper believes this creates the perfect opportunity for banks to swoop in.

Read more: "Alexa, what's an annuity?" This insurance company is using Amazon Echo

"Banks have an opportunity to boost loyalty and make consumer's lives easier by including insurance products in loyalty programmes or within packaged accounts and credit cards," said Roper.

"Given the data banks hold on consumer spending, using this information at the right time to offer highly personalised, timely and relevant insurance products would be valued by customers and can also generate incremental revenue for banks."

When Collinson Group asked people for their reasons for wanting to deal with a single provider, almost four out of five (79 per cent) cited convenience, while around half (51 per cent) thought they could bag a better price in return for their loyalty.

Retaining customers' attention on a face-to-face basis has proved tricky for lenders in recent years. Research by Which?, released last month, found that banks had closed the doors of 1,046 branches across the UK over the last two years.

City AM Would you go to your bank for insurance?

Related articles