Magazine article Global Finance

Cross-Selling Services Online

Magazine article Global Finance

Cross-Selling Services Online

Article excerpt

Automating and facilitating the cross-selling of financial services can leverage customer data and institutional capabilities. By Stephen Litzow

While the Internet has transformed many sectors, financial institutions have not fully leveraged the potential of the Internet, in part, because they have failed to pursue the benefits of cross-selling aggressively.

One reason that banks and other financial services companies have been slow to implement such online services is that most offerings benefit either the bank or the customer but not both. Among services that financial institutions have begun to implement are electronic bill presentment and payment (EBPP), online account histories, and account aggregation and online financial planning. However, these services are often offered simply to keep up with the competition.

But the financial institution's return on investment is hard to quantify. Although the convenience that online services offer online bank customers may promote retention, it does not guarantee increased revenue, which might be needed to justify the expenditures necessary to build and maintain online initiatives. Indeed, these online services typically represent a revenue loss when implemented alone.

To help realize a return on their online investments, financial institutions must be able to efficiently cross-sell bank products to online consumers. Such an application must be accepted by consumers, easy-to-use, and revenue-generating for the financial institution. One application offering such functionality is XpenseWise's Automated Marketing Platform, which enables institutions to cross-sell products to their customers with quantifiable benefits.

"A new breed of company is emerging to leverage EBPP and account aggregation information toward more effective cross-sales of bank products, delivering tangible benefits to the customer," says Paul M. …

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