Cumulative Bank Services and Balance
In the world of banking, it is often speculated that the more accounts and services a client holds with a particular financial institution, the longer they will stay with that bank. The idea is, the more accounts they open for each client, the more dependent these clients will become to their services, and closing several accounts to join another institution requires time and effort. Avoiding these tedious tasks will manipulate a client to stay with the given financial institution longer as well as prompting them to maintain majority of their funds under the same roof. There are many studies conducted to prove this scenario that is the reason why the “cross-selling” technique has been adopted by the banking industries. The ultimate goal is clear, and all financial institutions believe that “those who die with the most money win”. Whether or not these techniques create a false sense of loyalty, the question is: Does account balance exhibit any correlation to the number of services a client holds with the bank? Numbers don’t lie, we will explore and evaluate this hypothesis using statistics and data sets from Century National Bank to prove whether or not this idea holds true.
Hypothesis Statement
“Does account balance exhibit any correlation to the number of services a client holds with the bank?" The banking industry as a whole has changed over the past decade in which customer are able to use technology to update account information, view bank account balances via the internet, and mobile banking. These are a few of many new ways customers can receive updated information and access to their bank accounts. Banking institutions have expanded their networks by making it easier for their customers to access their bank accounts, open new bank accounts, apply for credit cards, as well as finding ATM’s nearest to the customer.