Bundling in banking — A powerful strategy to increase profits

Abstract

Banks can learn valuable lessons from the bundling models developed successfully in other industries. Bundling core banking products with additional services allows banks to differentiate themselves in a generally homogenous sector. Bundling also increases sales across product areas and aids customer lock-in. This paper provides an overview of how to create attractive and profitable bundles through a systematic, multi-stage approach to customer segmentation, targeting and product positioning.