There are many reasons why some customers are more debt-averse than others. Research has shown that millennials are particularly reluctant to take on debt and are also teaching their kids, Gen Z, to avoid borrowing. However, lenders need to understand how to position their loan products and provide advice for when taking a loan makes good sense for the customer.
Tag: Loan Sales
Almost every bank we talk to complains about the level of competition in their market. The most common statement we hear is “Banking is more competitive in this city than anywhere else in the country.” While many bankers lament about pricing and structure, few banks take the necessary steps to overcome this market challenge. One way to combat these market pressures is to conduct product positioning strategies.
Competition for quality commercial customers is ruthlessly competitive. For you to succeed as a commercial loan officer, you must be able to identify good prospects, understand their needs, distinguish yourself and your bank, and finally win the prospect’s business. However, very few banks teach their commercial lenders how to script sales calls. Not having infrastructure around the sales process could be a mistake because lenders that communicate with a sales scr
We offer free lender training to banks that want to improve their marketing, customer service and loan profitability. One of the things we teach is how to go after the huge refinancing wave that is taking place in securitized commercial properties. If you remembered back in 2006, the securitization market hit its high in volume, and many of these deals were 10-year fixed rate transactions that all come due in 2016.
The number one reason that banks struggle to grow their commercial business is their relationship managers don’t have enough time. Credit memos, compliance, administration and a whole host of other tasks take up the day leaving very little time to bundle a steady pipeline of profitable accounts. However, next to streamlining your calling officer’s day, the next largest impediment to prospecting is the lack of knowledge.
You brand your bank; why not brand your loans? The other day we attended a seminar on banking Millennials where a panel of Millennials was discussing how Millennials don’t believe the marketing hype like earlier generations did. We found this ironic as they sat there with Apple Watches, Stance socks (our favorite as well) and various other brands draped on their bodies in addition to the fact that all five were drinking bottled water despite a carafe right in front of each. Try selling bottled water to the Greatest Generation and you would be laughed out of the room.
Let’s say you are a bank. Let’s further say that your preference is to make loans to profitable customers in your community. We are also going to go out on a limb and speculate that you are trying to grow earnings and that you would like more loan volume rather than less. How is our fortune telling prowess? Pretty good, huh? Thank you. Since we are on a roll, we will also speculate that you might like our National-to-Local loan program to help with all the above.