Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Life Insurance

Study: Banks that Offer Insurance and Investments are More Profitable

X
Your article was successfully shared with the contacts you provided.

Households that buy investments and insurance where they bank are among a retail financial institution’s most profitable and desirable customers, according to a new study.

LPL Financial LLC, a San Diego, Calif.-based independent broker-dealer, published this finding in a summary of results of a survey, “The Value of an Investment and Insurance Customer to a Bank,” which polled 4,374 households. The study draws on data from the MacroMonitor, a retail financial-services and marketing database that measures, analyzes and interprets consumer attitudes, behaviors and motivations. 

The survey is conducted every other year by the Consumer Financial Decisions Group of Strategic Business Insights, formerly part of SRI International.

Households that buy investments and insurance where they bank are more likely to stay with the institution than customers with multiple banking relationships, the survey says. The report notes also that by under-investing in their investment and insurance services businesses, retail financial institutions are missing the opportunity to increase the “stickiness” of these highly desirable customers.

Among the study’s other key findings:

Consumers who have purchased an investment or insurance product from their primary bank or credit union have checking account balances that are 16% higher than those households without a brokerage or insurance relationship. 

Brokerage customers have savings account balances that are on average 85% higher than non-brokerage customers; and

Brokerage and insurance customers have more than twice as many credit products and 11% more remote banking products than customers who have not purchased an investment or insurance product from their primary bank or credit union. 


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.