Many community bankers are looking to increase profit growth, and management teams are focusing on cross-sell opportunities to accomplish this objective. For the banking industry, unlike many other industries, upselling and cross-selling has a high and disproportional impact on profitability. With proper tools and strategies, community bankers can upsell and cross-sell their products to maximize profitability. In this article, we will consider the common features
If you are a bank targeting margin, cost of funds or even risk-adjusted margin you may be using an incomplete equation to drive profitability. This might help explain why your large bank competitor is making loans at margins that you can’t touch. Ironically, some of the loan deals and relationships that banks pass on due to margin might be the more profitable ones. If this has happened at your bank, consider these metrics to have a more well-rounded approach to profitability.