Super industry targets cross-selling distrust
Industry super funds have taken out an expensive bet on consumer distrust of bank cross-selling.The latest television commercial for Industry SuperFunds depicts cash appearing magically in bankers' hands as they close loan deals for customers. It then shows a new borrower being asked whether the bank can help with her superannuation - to which she replies: "You're not getting your hands on my super" and explaining that she's with an industry super fund. The ad concludes with the line: "No sales incentives. Run only to benefit members".The new ad, created by The Shannon Company, began running in prime time late last week.It aims to exploit perceptions that banks' staff commissions, bonuses and other cross-selling incentives are leading bank advisers to provide advice that is not in their clients' best interests.ISA's campaign comes just weeks after the interim report of the Murray Inquiry raised concerns about the major banks' increasing presence in the financial planning space, and after a major scandal over the Commonwealth Bank's incentive-driven financial advice to customers. It also follows a political dispute over the federal government's removal of the catch-all requirement for financial advisers to act in their clients' best interests.The major banks have been attempting for many years to cross-sell superannuation products to their customers. Recent research from Roy Morgan confirms they have made slow progress, with each capturing less than 20 per cent of their customers' superannuation balances.A survey commissioned by the Customer Owned Banking Association, released last month, found 62 per cent of people do not trust financial advice from the Big Four banks. Industry SuperFunds is the main brand of Industry Super Australia (ISA), an umbrella organisation handling projects including marketing for 15 industry funds. The Financial Standard reported in February that ISA spent more than A$9 million on advertising in 2013.