Banking and insurance are different businesses, but together they can yield synergies: analysts

BANKING and insurance may be two different businesses, but analysts say there are undeniable opportunities for both of them when partnered together.

For instance, banks can gain fee income as well as lower credit risks and customer attrition through insurance partnerships.

Meanwhile, insurers benefit from having a productive distribution channel, access to a large customer base, and the connection with wider financial services, said Bernhard Kotanko, senior partner at McKinsey & Company.