Articles Tagged with Cross-selling

Scott Silver speaks to Investment News about the need to monitor a high-pressure industry practice that leaves some financially vulnerable

The practice of cross-selling on Wall Street is under growing scrutiny, especially in the banking and investment world. Cross-selling is suggesting or selling multiple, related products or services from the same financial enterprise to a potential customer. For example, a customer may already have a sizable investment with a large bank and be approached by a customer service representative about making a different and new type of investment with the company, or may be asked to purchase insurance or invest in a retirement plan. In these scenarios, the bank may use its existing positive relationship with a customer to help persuade them to increase their existing investment.

Banks and investment companies maintain that this is a highly effective and fair marketing strategy and that the consumer is being made aware of products and programs that apply to them, and that these connections are often made because of the strong and lasting relationship developed with the customer.