The other day I went to my bank to report a lost debit card. I left the bank with a new credit card and home loan.
Like all businesses, banks are in the market to make money. Cross-selling is no doubt part of that strategy to boost profit. I should know.
Last week I visited my local bank branch to report a lost debit card. I came out with a new home loan and credit card, in addition to the debit card.
The annual fee freeze got me in and when my new credit card came in the mail, I was whacked with credit card insurance. I went back to the branch to enquire about it. The branch assistant advised me to contact the insurer and then quickly added whether I wanted an investment loan.
Finally I managed to sort it all out, but it did get me wondering about the view among some in the industry about the issue of up-selling when it comes to superannuation.
Many feel low-cost super products introduced on the back of the Cooper review's MySuper proposal could shift people into higher-cost products.
A number of retail firms have already launched such products to the market with effective advertising campaigns.
And these firms also have wide-reaching bank branch networks to help secure new clients.
The consumer, of course, is who benefits from this competition, and such low-cost products from the retail players are welcome.
However, there may be a danger that the urge to up-sell and cross-sell among bank branch staff could shift these consumers into high-cost super products.
The MySuper product might unintentionally be branded as cheap and nasty, forcing people to move to other products, according to Australian Institute of Superannuation Trustees chief executive Fiona Reynolds.
"The dumbing down of MySuper could lead to a situation where fund members feel the need to switch to the higher-fee choice environment regardless of whether such a move is in their best interests," Reynolds said.
She said the government would need to give sufficient thought to protecting MySuper members - whether they belong to for-profit or not-for-profit funds - from the heavy-handed marketing tactics of for-profit promoters in the choice environment.
In the end, consumers need to make decisions that are in their best interest.
Or perhaps some, like me, should simply stop themselves from getting sucked into the marketing spin. The other day I walked into my gym to enquire about a free personal training session. I walked out having paid for three discounted sessions.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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