Cross-selling isn’t just a buzzword in Australia’s finance sector—it’s an essential play for banks, credit unions, and fintechs looking to deepen relationships and boost customer value. But in 2025, cross-sell strategies are getting a major facelift. Tightened regulations, advanced analytics, and shifting consumer expectations are setting a new standard for what it means to truly meet customer needs—without crossing ethical lines.
What Is Cross-Selling and Why Does It Matter in 2025?
At its core, cross-selling means offering customers additional products or services that complement what they already have. In finance, that might look like a bank suggesting a personal loan to a customer with a savings account, or an insurer offering bundled home and car policies. The goal? Increase the lifetime value of each customer while genuinely solving more of their problems.
- Increased Revenue: Cross-selling can be a major revenue driver, especially as acquisition costs climb.
- Customer Stickiness: Clients with multiple products tend to be more loyal and less likely to switch providers.
- Personalised Service: Done right, cross-selling tailors solutions to life stages and needs—think mortgage offset accounts for new home buyers or travel insurance for frequent flyers.
But in 2025, the landscape is shifting. Australians are more aware of their data rights, and the government’s continued rollout of the Consumer Data Right (CDR) and Open Banking reforms mean customers expect offers to be relevant, transparent, and easy to understand.
How Are Financial Institutions Cross-Selling Smarter?
The days of blanket offers and one-size-fits-all pitches are over. Instead, financial institutions are investing in smarter, tech-driven approaches:
- AI-Powered Personalisation: Banks like NAB and ANZ are deploying AI to analyse transaction data and anticipate needs. For example, noticing a surge in grocery spending may prompt a tailored credit card offer with extra supermarket rewards.
- Omnichannel Journeys: Customers expect seamless experiences across app, phone, and branch. Smart cross-sell prompts are now context-aware—offering a car loan pre-approval in-app right after a customer browses vehicle insurance.
- Ethical Guardrails: APRA and ASIC continue to crack down on aggressive or inappropriate cross-selling. In 2025, compliance teams use automated checks to ensure offers are suitable and compliant with Design and Distribution Obligations (DDO).
One standout example is Up Bank, which uses push notifications to suggest fee-free savings pots to customers who receive regular salary deposits, keeping the tone friendly, helpful, and non-intrusive.
Regulatory Changes and Consumer Trust
Recent policy updates are reshaping cross-sell strategies. Under the Design and Distribution Obligations (DDO) and the ongoing enhancements to the Consumer Data Right (CDR), financial providers must:
- Prove that products are being offered to the right target market
- Give customers more control and visibility over how their data is used
- Provide clear, simple explanations of bundled offers and their benefits
In 2025, ASIC’s focus has turned to “sludge” practices—where confusing processes or pressure tactics make it hard for customers to decline extra products. Fines and public scrutiny await those who fail to comply. As a result, leading institutions are making cross-sell offers opt-in, short, and jargon-free.
This shift is winning back consumer trust. According to a 2025 survey by Finder, 68% of Australians said they’d be open to cross-sell offers if they were timely and personalised, compared to just 44% in 2021.
Tips for Smarter Cross-Selling in Your Finance Business
- Leverage Data Responsibly: Use Open Banking data to identify needs, but always get clear customer consent.
- Focus on Value, Not Volume: Suggest products that genuinely help—don’t overwhelm clients with irrelevant options.
- Train Your Team: Ensure frontline staff understand compliance and how to spot opportunities for helpful cross-sell, not just upsell.
- Measure & Optimise: Track acceptance rates, feedback, and customer outcomes to keep improving your approach.
