A database approach to cross selling in the banking industry: Practices, strategies and challenges

Abstract

Competition among banks all over the world is getting increasingly fierce and the effectiveness of traditional marketing campaigns is reducing at an alarming rate. To maintain competitiveness, banks have to adopt new approaches to improve marketing and operational efficiency. This paper focuses on the issues pertaining to the database approach to cross selling, which is believed to be the key value-enhancer in the future. Since Hong Kong is always regarded as the `mirror of the future' for China, the authors use Hong Kong as an example to illustrate the practices, strategies and challenges of cross selling in the banking industry. Stories of cross selling in Hong Kong today will soon be retold in China with its 1.3 billion retail customers, and may significantly influence future cross selling operations and strategies there.