New Report: Product Bundles Strengthen Ties With Banks’ Most Profitable Customers

Amount - Bundled Banking Products: How Credit Cards Secure Customer Loyalty - August 2022 - Explore how FIs can boost key customers’ long-term value by offering bundled products and services

Amount - Bundled Banking Products: How Credit Cards Secure Customer Loyalty - August 2022 - Explore how FIs can boost key customers’ long-term value by offering bundled products and services

Financial institutions (FIs) have an opportunity to boost long-term growth and profitability by tailoring their products to appeal to consumers who have multiple credit cards. PYMNTS’ data has found that an FI account holder’s possession of a credit card, whether issued by their primary bank or a rival, is often a key indicator of the customer’s long-term value. Forty-four percent of consumers with credit cards from their primary banks are highly interested in payment recommendations from their banks.Amount - Bundled Banking Products: How Credit Cards Secure Customer Loyalty - August 2022 - Explore how FIs can boost key customers’ long-term value by offering bundled products and services

Consumers that use financial products and services often seek convenience and help managing their finances — a reality that may explain why it is crucial to bundle consumer products and services into packages that customers will find appealing.

These are just a few key findings within Bundled Banking Products: How Credit Cards Secure Customer Loyalty, a PYMNTS and Amount collaboration. The report is based on a census-balanced survey of 2,290 U.S. consumers conducted from April 21 to April 29. The survey asked respondents about their interest in bundled banking products and the payment methods they use.

Amount - Bundled Banking Products: How Credit Cards Secure Customer Loyalty - August 2022 - Explore how FIs can boost key customers’ long-term value by offering bundled products and servicesKey findings from the report include:

Thirty percent of consumers with credit cards from primary banks that do not offer bundled accounts are highly likely to switch FIs, yet just 15% of consumers who do not have credit cards with their primary banks are as likely to switch to FIs that offer bundled accounts. This discrepancy suggests that credit card holders place a higher value on bundled accounts than consumers who do not have credit cards.

Fifty-one percent of consumers with credit cards from their primary banks are interested in having all their spending accounts at a single FI. The appeal of bundled accounts among consumers who have credit cards with their primary banks suggests that banks can increase the overall value of their relationships with these customers by offering bundled solutions.Amount - Bundled Banking Products: How Credit Cards Secure Customer Loyalty - August 2022 - Explore how FIs can boost key customers’ long-term value by offering bundled products and services

Fifty-seven percent of consumers with at least one credit card with their primary banks say bundled banking solutions are easier and more convenient for them to use than other banking options. Consumers’ interest in bundled banking solutions is often tied to the features they believe are available as part of the bundles.

Because credit card holders place a higher value on bundled accounts than consumers who do not have credit cards, FIs that cater to credit card holders have an opportunity to create more loyalty among their customer base and increase their profitability. The FIs that are the most skilled at offering appealing packages of bundled products and services, especially to these key customers, will be best positioned to succeed in the highly competitive financial services market.

To learn more about how banks can secure a greater amount of customer loyalty by focusing on credit card holders, download the report.