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.
If you want more commercial clients before you buy marketing lists, spend money on advertising, cold call, ask for referrals or sponsor any events, consider training your relationship managers on how to use LinkedIn for prospecting. For us, LinkedIn is responsible for generating more commercial leads than all other social media channels combined and has been a great source of not only leads but also market intelligence and general brand building. Having intermediate or better LinkedIn skills are helpful for any banker and is now mandatory for any new relationship manager.
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.
As we go down the path of trying to improve relationship banking delivery, we stumbled on the question - what does being a “relationship banker” mean? This seemingly simple question proved difficult to answer.
Lending is a competitive business. While there are many good lenders, there are fewer good lenders that are superior salespeople in banking. We know one of the best that we reported on back in 2014 and thought we would update his production and techniques.
In a previous blog (HERE), we discussed the benefits of sales scripting for commercial lenders. A sales script is a way for the commercial lender to explain the bank’s sales proposition, and anticipate the borrower’s responses. It also helps the lender direct the flow of the conversation and most importantly it allows the lender to better listen to the borrower - be
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
If you have to battle the large national or regional banks for treasury management business, then you are in luck because competition is easy. Of course, many community banks don’t feel that way, but often that is because they have the wrong approach. At a recent conference, we gathered a group of banks to distill best practices and then enlisted the help of Mary Morgan, CEO of Financial Shop Solutions that specializes in helping banks better compete.
On your bank’s journey to become more of a sales organization, one question that needs to be asked, particularly to commercial and high net worth customers, is “What are your goals for the year and how do you plan on accomplishing them?” While it seems simple, it is amazing how often this question is overlooked by bank relationship managers or business development officers. Not only should that question be asked, but the answer needs to be committed to your bank’s CRM system. For that matter, it should also be part of your bank’s annual review with the customer.
Anybody that finds your bank through a Google search, social media page or another site’s link (like a state banking association) isn’t looking to bank with you. They are looking to gather information, research options or get educated about a particular banking product. If they were interested in banking with you, they would have come directly into a branch or your website. This is an important distinction as banks should be looking at this subset as one of their best sources of leads.