Choice and optionality are wonderful, but in some cases, consumers prefer dealing with one financial institution (FI) for more of their needs in order to simplify account management.
For the study “Bundled Banking Products: How Credit Cards Secure Customer Loyalty,” a PYMNTS and Amount collaboration, nearly 2,300 U.S. consumers shared information about their interest in bundled banking products. The study found such products deepen relationships and positively impact experiences.
“Consumers turning to financial products and services are often seeking convenience and help managing their finances — a reality that may explain why so many banks say it is crucial to bundle consumer products and services into packages that appeal to customers,” the study stated.
PYMNTS research found that consumers with credit cards from their primary banks “tend to be more interested in keeping all their accounts at one FI” for the convenience and added value that these relationships deliver to consumers facing the paradox of choice.
Per the study, “consumers’ interest in bundled banking solutions is often tied to the features they believe are available as part of the bundles: 57% of consumers who have at least one credit card with their primary banks say bundled solutions are easier and more convenient for them to use than other banking options,” while 55% of consumers with at least one credit card from their primary banks say bundled solutions make tracking and managing spend easier.
Get the study: How Credit Cards Secure Customer Loyalty
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