Tag: Customer Management

A Loan Strategy Given Lower Rates

Increasing Lending Profitability
INCREASING LENDING PROFITABILITY

Many industry analysts are increasingly gloomy on the banking industry, trimming expectations for net interest margin, interest income, and total profits. With long-term interest rates declining within a whisker of the lowest level in history, many analysts are reducing their forecast of banking profits by up to 10% through 2020 or 2021. However, we would like to share a current proven strategy for community banks to make the best of the current interest rate environment, lock-in their best clients, increase cross-sell opportunities, and actually increase margins. 

 

How To Conduct The Initial Commercial Customer Interview

Better Relationship Management

On the path to becoming a “trusted financial advisor,” many bankers don’t know where to start or even what being a trusted financial advisor means. At a minimum, it means knowing your banking products and their application. However, that’s table stakes. To deliver distinguishable value to the client, bankers need to take more of a leadership role on items such as business growth, M&A, crisis management, and general operations.

How, And When, To Position Loans Like Equity

Improving Loan Sales

We have witnessed some banks position their senior secured loans as quasi-equity financing.  This plays well to borrowers who are looking for long-term banking relationships, and it has helped these innovative banks secure quality clients, increase relationship lifetime value and drive core deposits.  In this blog, we will outline how these banks structure these credits and how they position these loans for maximum effect.

How To Condition Your Banking Clients

Bank Client Management

We recently worked on a request for proposal (RFP) with a bank.  The opportunity included a large commercial loan, a deposit relationship and substantial treasury management services.  The commercial lending team, branch management, and the treasury services group spent a lot of time on the proposal and came up with a creative solution.   On the date of the company’s board meeting, the Company’s CFO informed all of the bidding banks that the board liked one specific feature of our proposal and the bidding process would be extended by one week t

Cupping Our Way To Better Banking Performance

Bank Strategy

When you observe Michael Phelps getting out of the pool with those multiple cupping welts, take note – that is what the banking industry needs. We need to do some cupping – around loans, around deposits, around fee income and especially around products. There is no doubt you have cupped yourself, been cupped or at least asked – what is cupping? No matter what your question, it doesn’t matter, because cupping isn’t a real thing, at least in the proven scientific sense.

How to Defend Existing Banking Relationships

Lenders typically are thrilled when they bring new customers to the bank. However, some of your most profitable customers are already at the bank.  Bankers are often surprised that, all else being equal (credit quality, loan and deposit size, etc.), existing relationships are more profitable than new relationships.  While part of most lenders’ responsibilities is business development, retaining and enhancing existing accounts is the most important and efficient way to boost your portfolio’s return on assets.

There Are Some Profitable Bank Customers That We Don’t Want

Bank Customer Focus

One of the best lessons that we have learned when it comes to bank marketing is not every potential customer should be a customer. Of course, what that means is that at some point you have to tell a profitable customer that we are not the bank for them and make the introduction to a competitor. This is hard to admit, particularly when you see a customer with strong deposit balances and a healthy appetite for loans that really want to do business with you.

Do You Have Bank Customer Baldness?

Bank Customer Management

About 70% of all men have worried about genetically programmed hair loss since the days of Julius Caesar (who incidentally had a serious comb over).  As a man ages, somewhere around his early twenties, hair loss takes place and no amount of Rogain, head massages, Cayenne pepper rub or goose dropping treatment can replace it.  Similar to Male Pattern Baldness, some banks are genetically programmed to lose younger customers. They start to lose them around the edges, in the middle and then the most profitable on top.

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