Many community bankers are now considering how to position their asset and liability portfolios for declining interest rates. On the one hand, interest rates should be falling more, and on the other hand interest rates are being talked down against a backdrop of still strong economic data.
Tag: Relationship Management
A surge in alternative lenders and intense competition among banks has forced community bank lenders to further differentiate themselves and their institution. Many lenders are switching their professional focus from being a salesperson to being a trusted advisor. Recent teaching from St.
Statistics show that bankers do not ask enough questions on a sales call with a customer. The average banker asks about five to seven questions, and unfortunately, most of those are pretty standard like “What keeps you up at night?” or “Do you have your latest financials available?” As we like to say, good questions are better than good answers and customer questions are one easy area where bankers can improve.
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.
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.
Statistically, we call it the density function. The more potential clients that are located in close physical proximity to each other, the higher the probability that each will become a client of your bank. Consider that during college, a time in your life was you likely had a high density of people around you, at any given moment, 20 people could randomly show up to your apartment or house. Sometimes you would be asleep only to wake up to find a small party in your living room without so much as an invitation.
As most of our readers know, we are big fans of using content to inexpensively acquire customers. The tactic helps to pull prospects into our brand, helps generate leads and helps with conversions. Content is an approach that can differentiate both the bank and the relationship manager. As they say, if you are using content, there is no such thing as a cold call.
Recently, we sat down with Jack Hubbard of St. Meyer and Hubbard to compare sales call note-taking approaches. We were both amazed at how few bankers take notes during meetings and sales calls. While there are lots of reason not to take notes, there is one scientific study out there that shows you can have 70% or better recollection of an event past three months. Since the customer is one of the most important assets to your bank, and you likely pride yourself on being relationship-driven, then it only makes sense that every banker should take notes.
The most common complaint we hear from commercial bank calling officers is the lack of time available to prospect for new clients. Commercial lenders, banking, and calling officers spend less than one-third of their time selling. The majority of their time is spent on administrative work, credit and internal meetings. Furthermore, commercial calling officers get a second meeting with a prospect only 20% of the time, and a third meeting less than 10% of the time.