We have come to believe our money is safe in banks. He adds that the relationship between a financial institution and the customer has to exist at all touch points the Internet, direct mail, television, telemarketing, ATM or bricks and mortar. The provider needs to realise that the customer defines the degree of relationship that they want with the institution, Maites says. Consumers are not going to let their money go easily. The importance of developing relationships with customers, whether it is simply sending out a calendar or a birthday card, is essential, he said.
Some effort has to be made to personalise the identity of the provider.
Robert Hartwig, economist for the Insurance Information Institute , notes it is ironic that, while appearing to encourage closer relationships with their customers, banks have actually kept them away by providing ATMs, direct deposit, loans by phone and mail, and Internet banking. This could prove disadvantageous in the future, he suggests. Ultimately, then, these institutions must strike a balance between the business risk of maintaining expensive physical locations and the customer risk of losing the relationships that make cross-selling possible. Certainly, if it can be made to work, cross-selling is an appealing prospect. Insurers and agents will have a chance to become a force in centralising consumers finances, predicts Hartwig, especially as a partner or in an alliance with banks.