Fee-Based Add-on Package at $100+ Billion Bank

National Financial Institution
Assets: $100 Billion +
DDAs: Unavailable

A top 25 institution is a heavy promoter of free checking. However, in 1995 they teamed up with Affinion Group to create a benefit package that they could sell to their checking customers.

The program offers any checking customer the option of purchasing a package of financial and lifestyle benefits for a $4-5 monthly fee. To promote the account, the institution provides employees with the add-on package at no cost. In addition, the institution employs periodic mailings which offer a "live check" as an incentive for customers to purchase the package.

Although the institution's external promotion continues to focus on free checking, employees receive incentives to sell the add-on package at the new accounts desk. This strategy has enabled the institution to increase cross-sales, to enhance existing relationships, and to establish a dependable fee-income product that customers choose and appreciate.