In late 2013 RFi, global experts in banking consumer intelligence (and I should also note at this point, my employer) surveyed 24,000 consumers across 12 markets to identify which retail bank is the global leader in cross-sell.
Now before I dive into the detail there are a few terms we like to throw around that I should clarify :
- Main bank is the primary bank relationship for a customer as defined by the customer.
- Unique product is a distinct product type (e.g. credit card, mortgage, transaction account)
- Cross-sell is the number of unique products a customer holds with a particular institution
To measure cross-sell performance we looked at the number of unique products held by a main bank customer.
So who is the global leader?
We have presented the results to senior executives from retail banking around the globe and when asked for their prediction, Wells Fargo is the clear favorite. However Wells Fargo only managed 5th in the USA on our measure of unique products.
The RFi global leader is Standard Chartered Singapore with a world leading 4.6 unique products per customer.
But when we look behind the data there are a few things to note:
- Stan Chart has only 5% of main bank relationships in Singapore. DBS/POSB lead that market with a whopping 62% main bank share
- Stan Chart convert a lowly 14% of their customer relationships into main-bank status but once converted are the most effective bank in the world at growing that relationship with additional unique products.
- Wells Fargo has 3.1 products per main bank customer, which is the market average for the USA. Bank of America takes honours in the USA with 3.4 products per customer.
The differing market dynamics also need to be accounted for….
- Geography – having a physical local presence is important in choosing a main-bank. The size of Singapore means you can be closer to a greater percentage of the population with fewer branches, particularly when compared to the USA
- Population affluence – Singapore has the highest concentration of millionaires in the globe. Richer people use and need more banking products.
- Competition – there are over 6,000 banks competing in the USA. Singapore has less than 200.
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