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Industry super funds fail on product cross-sell
New research shows industry super funds had very little success on cross-selling ME Bank's products to their members over the last 12 months, while the big four banks had great success in this area.
According to a Roy Morgan survey, only 1.6 per cent of the 6 million industry super fund members deal with ME Bank. Similarly, 2.7 per cent of AMP's 1 million personal super customers use the group's banking products.
At the other end of the spectrum, around 60 per cent of Westpac and Commonwealth Bank personal super customers had a banking product with their respective groups, followed by ANZ and National Australia Bank at 45.3 per cent and 34.9 per cent respectively.
Industry communications director at Roy Morgan, Norman Morris, said while the big four had capitalised on cross-selling to their superannuation customers, AMP Group and the Industry Super Fund sector have had very little success in this area.
However, this could be a great starting point to attract new banking customers, Morris said.
"Cross-sell of financial products is an increasingly important target of all the major financial service providers to try and increase their share in the current competitive market," Morris said.
"Over two thirds of the consumer and business population in Australia have a superannuation account and it would be beneficial to capitalise on their existing relationship with the institution by cross-selling banking products, as has been recognised by industry funds with ME Bank, and AMP with AMP Bank."
In the past, he added, the superannuation industry has not built on the significant relationship it had with its members, but this trend is starting to change.
"The superannuation specialists are obviously up against tough competition from the big four banks when it comes to banking products because their members already have relationships with these banks."
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