Conservative MP John Redwood says banks should make more use of the information they hold on their customers’ finances to increase the amount of cross-selling they do.
Writing on his blog, Redwood says that compared to supermarkets, banks know far more about their customers and should use the knowledge of how much people have in their current accounts and how they spend money on their debit cards to make people “feel like the bank is on their side”.
He says: “My bank hardly ever approaches me with an offer of any additional service. It does not notice if I have some cash that could be put into a savings product, or am short of cash and might need a personal loan. It may see a customer taking out a mortgage elsewhere or buying a car, but fails to make contact to see if it can help.”
In contrast, he says, supermarkets know only what items a customer buys in their shops but “use this data to full effect” by offering discounts and offers.
He says: “My food retailer knows I shop elsewhere and they want more of my business. They reward loyalty and they encourage a wider relationship by intelligent marketing.
“Customers want to feel the bank is on their side, but all too often feel it is not. A healthy dose of getting to know the customers and offering us the services we want at good value prices would be most welcome.”