Dec 17
Market Share PDF Print E-mail

"Today your competition is making significant strides in reaching out to your most profitable and wealthy customers."  An investment program gives your Financial Institutions ("FI") the opportunity to strengthen its position in today's competitive marketplace. Implementing an investment/insurance program increases profitable, long-standing relationships with existing clients and empowers your FI to attract new clientele.   If you want to stay competitive and provide service to your client base you must offer insurance and investment products. Cross-selling enhances the employee's relationship with the customers and mitigates the risks of customer disintermediation.  If an FI does not provide these alternatives to its customer base, some other bank, brokerage firm, insurance company, credit union, mutual fund company or an Inter-net bank will take away your customer base and their deposits.

Once a customer is lost to a competitor, the cost of obtaining a new customer relationship is 7-10 times greater than the cost of retaining the existing ones. Your competition is no longer just the other institution down the street it is all of the above organizations.

To remain competitive, FIs must take on the role of banker, insurance agent, investment advisor, and retirement planner; these job duties will help mitigate the probability of customer disintermediation from your institution and attract new, younger clients.  By creating a "one-stop" financial office in the FI, you are able to capitalize on an established relationship of trust and credibility generating a new source of fee income for your FI and bring new value to your customers.