January 2019

Learning from Other Bank’s Commitment Letter Mistakes

Better Term Sheet Practices

One of the best ways to become a better banker is to pay attention to your competition and analyze their strengths and weaknesses.  We pay particular attention to term sheets and commitment letters from other banks to learn what other banks are doing well and where they make mistakes.  We intend to capitalize on competitors’ weaknesses and to learn to address and respond to other banks’ strengths.  We recently reviewed a term sheet that we thought highlighted some in

Better Understanding Your Bank Competitors

Competitive Positioning

Knowing who your competition is, what they are offering, their delivery channels and service levels can help community banks differentiate their services and enhance their competitive advantage.  Understanding the competitive banking landscape helps community banks set proper pricing, effectively respond to rival marketing, and compete more effectively.  Analyzing the competition can also help a bank be realistic about which products it can sell and at what price.