Smart product bundling to boost price enforcement and cross-selling

Published on April 6, 2024

Leveraging customer decision making and behavioral economics to develop mortgage product bundling strategies that stimulate growth 
 
OPPORTUNITY/ISSUE  

An European bank found itself grappling with heightened challenges in the mortgage market, characterized by increased pressure on margins and a declining market share.  

The landscape was shaped by the entry of new competitors, the influence of brokers, a persistently low-interest environment, and a market that was becoming more transparent. 

In this increasingly competitive and dynamic environment, the high comparability of mortgage products and the lack of differentiation contributed to customers perceiving mortgages as commoditized. Consequently, this perception led to a gradual erosion of margins for the bank. 

Faced with these pressing issues, the bank recognized the urgent need for strategic interventions. The primary objectives were to…

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