Mr Trevisan, who works for marketing consultancy Simon-Kucher & Partners, says that an example of cross-selling is banks giving current accounts away for free in order to later sell the client loans, mortgages and overdrafts
I guess legacy banks offering ‘free’ accounts is a loss leader to more profitable products, due to their expensive branches and IT systems. But I keep reading that Monzo can break even/generate cash from current accounts as they have no expensive branch network, and new IT?? I guess that at the end of the day both are businesses that need to generate cash to keep investors happy. But I hope Monzo will do it in a more friendly/customer focused way.
I recall that Monzo has said previously that their current accounts would be profitable by themselves (gross), but would not generate enough profit to cover the cost of the bank as a whole (net). To cover the overheads, the marketplace will exist.