Midwestern banks see 'cross-selling' as the major source of growth this years.

• Position: MARKETING NEWS - Brief article

CROSS-SELLING to current customers was seen as the most significant source of growth over the next 12 months, according to a recent survey of Midwestern community banks conducted by Cross Financial Group, Lincoln, Neb.

The biggest challenges to bank performance were listed as "asset quality," "credit management," and "interest margin." "Regulatory oversight" and "noninterest income" were also cited among the top five challenges.

When asked about their level of optimism about banking industry performance over the next 12 months, the majority, 69.8 percent said their feelings were in the middle between "very optimistic" and "not at all optimistic."

The survey was based on responses from 238 bankers in 14 mostly Midwestern states. Eighty-nine percent of the responding banks had assets sizes below $1 billion.

When asked what will be the source of their primary competition over the next 12 months, the...