Anticipated new rules from the Financial Services Authority (FSA) will
require banks and building societies to offer more personalised packaged
account benefits, according to incremental revenue experts Collinson
Latitude.
Janet Titterton, director, Collinson Latitude, says: “The FSA is
expected next month to announce new rules on packaged bank accounts,
following the regulator’s recent consultation paper. The FSA is
supportive of packaged accounts because they offer benefits that add
value for customers. However, it is expected the FSA will introduce new
rules to help ensure consumers are clear about what they are buying
through such packages.”
Current market conditions mean banks have to work harder than ever to
attract and retain customers and increase revenues. Packaged accounts,
through which account holders pay a monthly fee in exchange for a bundle
of products, such as travel insurance, have become an important source
of banking revenues. The FSA’s ruling is expected to make it easier for
the consumer to make an informed decision when considering the
increasingly complex bundles of different bank account benefits.
Titterton explains: “Many insurance policies provided through packaged accounts
have become harder for customers to understand and compare with
alternative products. The anticipated FSA ruling will ensure insurance
products offered are suitable for this type of account.
“It costs retail banks as much as six times more to attract a new
customer as to retain an existing one. Customers are becoming
increasingly demanding and expect to be presented with products that
reflect their current lifestyle needs. The new rules being considered
will ensure customers get more choice, more for their money and are
offered benefits they deem relevant.”
In anticipation of the FSA’s ruling, Collinson Latitude is launching a
range of value-added products and services, including travel benefits
and insurance products, which are specifically designed to help banks
comply with the new requirements for packaged bank accounts.
Titterton continues: “In the consultation, the FSA has been asking for
feedback on its proposal that banks should establish a customer’s
eligibility and suitability for individual policies, as well as
providing account holders with an annual eligibility statement and
keeping a suitability assessment. Collinson Latitude’s packaged account
products and services are designed to help banks meet these requirements
and reflect the need for customer protection at all levels.”
Collinson Latitude provides companies with the tools they need to
develop lifelong relationships with their customers. The company’s
portfolio of travel benefits includes travel planning services, travel
assistance, emergency assistances and enhancements for frequent
travellers, while its insurance products are tailored to specific market
needs and commercial requirements. Collinson Latitude can supply
incremental revenue solutions to banks across the UK, Europe, Middle
East, Africa and Asia Pacific.
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