An investigation of banks' cross-selling techniques within a Maltese context with particular interest to life insurance policy

Abstract

Cross selling refers to selling or proposing significant or complimentary products and services to customer. If this process is undertaken effectively, cross selling might result in substantial profits for those implementing it. This process is not only an efficient business practice, but also leads to successful financial planning. The study sought to investigate how effective are cross-selling strategies within the Maltese banking environment. A quantitative research design was utilised to understand whether techniques adopted by banks are imperative to attain their desired objectives; to entice customers to trust their current banking provider with any other emerging financial services they might require. To gain an in-depth understanding of the local scenario two short interviews with personnel who are deeply involved in the cross-selling strategies adopted by banks within Malta were held. The results, from the participants' responses, indicate that - Even though it seems that banks are portrayed as a 'one stop shop' and highly diversified institutions, there is lack of knowledge as regards to their products and services. Numerous factors influence banks cross-selling effectiveness, some are dependent by the bank whilst others are external such as income levels, level of knowledge and trust. - If banks develop a good cross-selling strategy individuals will be willing to trust these institutions with their belongings. Recommendations for the enhancement of bank services are given in the study. Finally, future research are suggested to explore current trends that in turn aid banks to adjust services and products to the wants and needs of their customers to strengthen the customer bank relationship which will have a positive effect on the growth of the economy.