The majority of affluent bank customers don’t purchase insurance and investment products from their bank or credit union, but those that do are among the most desirable customers
, according to a new study.
Just 2 in 10 affluent customers have purchased insurance and investment products where they bank, according to a study co-sponsored by Prudential Financial Inc. and Western National Life titled, “The Value of an Investment and Insurance Customer to a Bank.”
Consumers who do purchase these products at their bank have an average of $348,000 of investable assets, 84 percent higher than the financial assets of other customers, the study said.
"Overall, banks and credit unions have a terrific opportunity to market to households likely to buy investment and insurance products
," said John Gies, vice president and national sales manager, Prudential Annuities.
In addition, the study found that investment and insurance customers are approximately one-third more likely to remain with their current institution, even if they receive better offers.
Savings account balances are also 16 percent higher among customers who purchase investment or insurance products from their primary bank or credit union, according to the study.
"The results provide the proof needed for banks and credit unions to seize the opportunity for developing investment and insurance relationships with existing customers," said Kenneth Kehrer, Ph. D, founder of Kehrer-LIMRA
and co-author of the study. "The ones that commit to these relationships will clearly have a competitive advantage.