Industry superannuation funds are failing to convert customers to their retail banking franchise, and are lagging behind the banks on cross selling, the latest research from Roy Morgan has found.
The Roy Morgan Consumer and Business Finance Single Source Survey found that three fifths of personal superannuation customers at Westpac (60.3 per cent) and CBA (59.6 per cent) also held banking products at the group. The figures were lower at ANZ (45.3 per cent of super customers) while at NAB, 34.9 of personal super customers held banking products at the group in the 12 months to July 2013.
For business super customers, the crossover to banking products was similar at Westpac (59.3 per cent), lower at CBA (49.4 per cent) and ANZ (41.5 per cent) and higher at NAB (38.6 per cent).
“Over the last few years, the big four banks have capitalised on cross selling to their superannuation customers,” the report stated.
However, just 1.6 per cent of six million members hold accounts with the industry fund-owned ME Bank. AMP also lagged behind the big four, with 2.7 per cent of personal super customers also holding banking products with the group.
“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,” Norman Morris, industry communications director, Roy Morgan Research told ifa.
“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.”
What made the Industry funds think that their members would feel loyal enough to purchase other products? The fact is most super members in industry funds were forced into these funds due to the industry they worked in. Furthermore, members were of the belief they were being looked after as a member with low fees. Turns out they have not been as looked after as they thought and the public can now see the unsavoury connection with the Labor Party and what that Has meant with jobs for the boys. The industry fund network has zero credibility and will be seeing to watch how they react to a government not so inclined to legislate in Europe favour.