Consumer surveys2 have indicated time and again the usefulness of product bundles in the banking sector and their direct correlation to customer retention and loyalty. While banks acknowledge the significance of bundling, effectively utilizing them to enhance customer loyalty has been a multifaceted challenge.
Firstly, neobanks and other non-traditional players entice customers, particularly Gen-Zers and millennials, away from traditional banks by offering digitally sophisticated and highly convenient services. Secondly, the rise of e-wallets for payments has disrupted traditional channels, assigning regulatory functions to banks, thus widening the gap between a bank and its customers. Thirdly, customers prefer using super apps as a single window to access various services such as booking movie tickets, flights, restaurant reservations, and peer-to-peer money transfers.
The choice of banking products and services is based on the need, age, lifestyle, and preference of the customer. For example, the customer may choose a credit card from bank one, make payments through an e-wallet, and avail loans from a third bank. This proliferation has resulted in severe fragmentation of banking services and a loss of visibility into customer transactions and data. Customer loyalty, a key element of a successful banking operation, has therefore become almost non-existent.
Why Banks Must Prioritize Bundling Strategies to Retain Customers and Grow Revenues.
Effective Bundling Strategies for Modern Banking.
The Power of Strategic Bundling
in Banking.
Why Banks Must Prioritize Bundling Strategies to Retain Customers and Grow Revenues.
Effective Bundling Strategies for Modern Banking.
The Power of Strategic Bundling
in Banking.
