TurboTax, a popular tax preparation product, offers tax preparers the opportunity to purchase identity theft protection when they file their tax return. Among TURBOTAX users who also had identity theft monitoring in our sample, 50.3 percent chose Experian (Turbotax’s partner). Among other tax software users that also selected identity theft, only 36.5 percent chose Experian. Experian has been able to claim a greater share of the market by partnering with Turbotax and being present when the tax software purchase is made.
When somebody is making a big financial decision, such as taking out a loan or opening a new investment account, they are doing so because they believe it will improve their future financial life. During this time, they may be open to other products or solutions that can help them reach their goals. Our data shows that bundling can be effective.
Financial institutions should consider offering identity monitoring as a paid add-on when users open new products in order to generate non-fee income. Consider offering this as a free perk with lending or deposit products. Another suggested time to propose an upsell: when mailing end of year statements to higher interest earning account holders, including an opportunity to take advantage of a partner product or add-on feature to secure their digital footprint.
When users are completing a big financial transaction, their minds are open to other needs, such as protecting their digital identity.
Source: Alkami Telemetry Data for this figure was sourced from a panel of 22 financial institutions with more than 2.5 million account holders and over 1.5 billion transactions.
