Banks Bundled Services Will Save Money

This article is going to be about saving you money. That is right. It is all about saving you pots and pots of cash. But we need some help from your financial system of your country’s economic policies. Because different people online come from different places, this may or may not apply to you.

Certain countries have always had laws to separate financial institutions from engaging in an all inclusive financial business. This is in place primarily for the protection of the economy and for anti-trust reasons but there are upsides to having a company be your sole provider of all your financial service needs and that is money. You see, it will be much cheaper for you to buy your insurance from the same company that you bank with. The reason for this is that you can then negotiate lower and easier terms for all your financial products. If you are taking a credit card from the same bank that has a your checking account and insurance, then you might be able to negotiate a lower rate. If you are buying your insurance from your credit card provider, then you might be able to negotiate a lower premium or deduct ible.

But of course, the flip side of this is that financial companies that engage in shenanigans would be more likely to fail and take down their customers hook line and sinker. So if your financial institution were to fail, your bank account, insurance, loans and all other financial products would be affected. It is kind of like putting your eggs in one basket. Sure, you don’t have to carry multiple baskets but then it does get a little risky. So how does it all work? How do you actually save money? Well, it is simply what economists like to call economies of scale.

Because the costs of providing you value added services are only incremental to the original cost of actually setting you up as a customer, you win and they win. The bad side of this is if they fail then they take you down with them hook line and sinker and all your financial services will be affected. This is one reason to keep all the services separate as it provides some measure of security.

If there is only one company dealing with the customer, then a lot of those costs can be saved.  Those savings are passed on to the customer and therefore it becomes cheaper to buy bundled services from one single financial institution.