Community bankers are often starved for marketing support and sales resources. We face the same challenges at CenterState Bank, where our commercial lenders are scrambling to compete for quality customers, manage existing loan portfolios and address daily administrative tasks. We all wish we had extra help from marketing and assistance for our sales collateral. Additionally, we observe that very few banks have standardized client-facing presentations, and most lenders are left to create proposals on their own time and format. We decided to help community bankers by sharing some marketing collateral. We make available our online proposal generator that any community banker can use without charge. We created a simple input screen that creates a PDF four-page proposal with your bank’s logo, that a commercial lender can share with a prospect or customer. It is available 24 hours a day, 7 days a week, and this material is a powerful marketing and learning tool for lenders.
How it Works
We created a simple online input screen that lenders can access anytime. By inputting the borrower’s name, loan amount, starting date, loan structure, and credit spread, the online module returns a standardized four-page PDF presentation that shows the following:
- Page 1 is the cover page shows the borrower’s name and bank’s logo. We can download any bank’s desired logo and color scheme.
- Page 2 shows the various loan structures and loan rates and graphically demonstrates where interest has been for the last 30 years and where the market expects rates to be for the next 10 years.
- Page 3 demonstrates graphically and explains a common prepayment provision that lenders may choose to show the borrower.
- Page 4 attempts to qualify the borrower’s preferred loan structure by identifying the borrower’s view of interest rates and plans for the loan and long-term business needs.
The lender can also calculate the present value of a basis point in the loan to appreciate the net revenue effect of the credit given size and loan structure. Lenders may contact us to download their bank’s preferred logo which will then be included in all future proposals that they generate.
Benefits of the Proposal Generator
Our goal is to make lenders more efficient, help lenders create simple but effective and uniform marketing material, and also educate the lenders in the process. Using the online proposal generator the lender can glean the following information:
- See how interest rates move day-to-day. Our proposals use live daily curves for various commercial loan structures so that lenders stay informed in this rapidly changing interest rate environment. Lenders are, therefore, able to remain current on market rates.
- We offer a loan pricing model that allows lenders to price commercial loans and calculate the ROA and ROE for different credits to reflect the profitability of the various options in the generated proposal.
- Because we structure loans and buy and sell them, we can offer structuring advice. We can share current prevailing loan rates and loan structures.
- We can suggest and provide other information and presentations that are used effectively by other community banks to win loan business.
- We created a short video to help bankers learn how to use our online proposal generator, the link is below:
We feel the same marketing and sales pressure at CenterState Bank that you experience at your bank. We have developed an entire infrastructure to help our commercial lenders compete effectively, and this includes a loan trading desk, loan pricing module, sales and training protocol, marketing material, and an online loan proposal generator – that we make available to any community bankers. We encourage and appreciate any feedback you may have on the proposal generator because we would like to hone this tool to help community bankers become more formidable competitors.
Submitted by Chris Nichols on March 28, 2018