Encouraging lenders to cross-sell: lenders can sell added products and service--thus enhancing bank revenue--by employing three simple strategies when processing applicants.

• Author: Guy, Allen

BANK EXECUTIVES HAVE LONG STRUGGLED with the notion of transforming lenders into well-rounded bankers who consistently cross-sell other financial products and services to their customers.

Loans are the backbone of any financial institution and will always be the driving force behind profitability. But given the talent and resources many banks have, shouldn't the opportunities to enhance revenue through cross-selling loan customers be employed to maximize shareholder value?

Almost all financial institutions have the quality individuals and products through which customers can receive great benefits and provide the bank increased earnings. Lenders often don't realize the cross-selling powers they possess and too often miss opportunities to enhance revenue. Below are three ways that lenders can use their key powers to transform themselves into full-fledged bankers.

1. Use the power of the "check in hand."

   Every lender knows how difficult it is to contact a customer when a loan is past due, a checking account is overdrawn or updated financials are needed. On the other hand, when a customer is in need of funding for new capital equipment, a working capital line of credit or a short-term loan to fund annual bonuses, he or she is eager to provide all that's requested from his or her lender.

   It's at that moment the lender has the opportunity to become a banker and increase the profitability of the lending relationship.

   Too often lenders close the loan, hand the check to the client and leave revenue on the table simply because of fear of losing a loan deal. Their approach to...