Originally posted by Jill Dias on The Andera Blog. Follow us on twitter @AnderaInc.

Cross-sell is now a core part of the job description of every customer-facing bank and credit union employee. When a customer or member opens a new checking or savings account, the goal is to expand the relationship early on by selling them additional products – a CD, a credit card, a loan, etc.

Some banks and credit unions could also realize a boost in their business by working closely with their sister financial investment firm.  Almost all of the major retail banks now also own a large investment firm, which has brought cross-selling opportunities to a whole new level. Bank of America has now made it a core priority to cross-sell their customers to their corporate and investment division, Merrill Lynch. Wells Fargo Wealth Management provides financial products and services through Wells Fargo Bank, and TD Ameritrade is a key subsidiary of the TD Bank Group.

Model # 1: Cross-Sell within Retail Banking

First and foremost, retail banks and credit unions should focus their cross-sell energies on the low-hanging fruit, products like credit cards or money market accounts.  For intra-institution cross-sell, a multichannel account opening and lending platform with automated cross-sell is key.  Dynamic software can make calculated, targeted recommendations to the account opener and offering additional products such as auto loans or CDs.

Model # 2: Investment Firms Cross-Sell to Banks

Financial advisors at investment firms currently use their retail bank partners to expand their reach and diversify their product offerings to existing customers.   Many investment firms have tweaked their compensation plan for 2013 to encourage brokers to not only look at bringing in new assets, but also to focus on fee-based products such as mutual funds, alternative investments, and annuity products such as insurance and trust offerings.

Introducing Model # 3:  Banks Cross-Sell to Investment Firms

Likewise, retail banks can cross-sell or make referrals for investment bank products.  Right now, this is an underutilized opportunity.  Loan officers especially are sitting on goldmine.  As a mortgage loan officer at Bank of America and Wells Fargo, I’ve combed through hundreds of credit profiles to determine the financial status and future financial goals of the borrower.  The loan officer is in a key position to refer to an investment firm.  If a proper cross-sell model was structured for loan officers to deliver high quality, real time referrals to their financial advisors, then a whole new audience of customers could be reached. I haven’t heard of any compensation plans that incentivize retail loan officers to make referrals to their wealth management partners or financial advisors.

Bridging the Gap

To increase cross-sell, technology and incentives are key. Using a smart account opening and lending platform automates cross-sell in the branch, making pre-qualified, targeted offers at the right time. Unfortunately, few if any platforms for cross-sell between retail and investment arms exist. In this case, designing the right compensation plan to incentive referrals is essential.