AMP unsuccessful at product cross-sell
AMP Group has had little success at selling banking products to its superannuation customers, unlike the Big Four.
New research by Roy Morgan shows only 2.7 per cent of personal AMP Superannuation Fund members deal with AMP Bank. Similarly, 1.6 per cent of industry fund personal members are also ME Bank Customers.
On 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 been building on the significant relationship they have with their 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.”
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
