In a time when financial institutions are
vying for business — and working to earn
the public’s trust in lieu of headline news of a volatile banking industry — now is the
time to re-evaluate your current banking relationship. Is your banker fulfilling the role of
“trusted adviser”? Can your bank provide the
capital you will need to grow your business in
coming years? Will your banker really work
for you, in good times and bad?
“Your banker should understand what
keeps you up at night,” says Lou Poppovich,
vice president of commercial banking for
Huntington Bank’s Akron/Canton region.
“Your banker should take the time to really
understand your business and the industry in
which you operate. That way, he or she will
be equipped to provide value-added solutions that will help you grow your company.”
Your commercial banker, adds Poppovich,
should be an integral part of your trusted
adviser team, along with, at a minimum, your
accountant and your attorney.
Smart Business spoke with Poppovich
about what makes a good banker and how to
push banking relationships to the next level.
What makes a good banking relationship?
Fundamentally, a good banker will take the
time to listen and will work hard to understand your business. Responsiveness is huge
as well. Your banker should be calling you
back and handling your issues in a timely
manner. There is no substitute for exceptional service. A relationship focused banker will
also take the time to meet with you on a regular basis to discuss your financials, your
needs, your concerns, your industry, to tour
your facility, and to learn how you conduct
business on a daily basis.
Good relationships also include the business owner’s willingness to open up to his or
her banker. Don’t just call your banker when
you have a problem. Share the good news,
too, like when you have a new customer, a
significant sale or a new hire that will
strengthen your management team.
How does a business owner push a banking
relationship to the next level?
There are two ways: one, know what products and services will benefit you, and two, know the bank’s decision makers. A proactive banker will suggest new ideas and solutions to help companies with their financial
needs. If a banker is attuned to the new products and services the institution offers, and
has your best interests at heart, he or she will
suggest ways you can upgrade services.
How many bank professionals should a business owner get to know?
If you are looking for a strong, solid banking relationship you should know all of the
appropriate decision makers and product
specialists, such as senior management,
credit officers, branch manager(s) and last,
but not least, your banker’s administrative
assistant. Insist that you get to know these
key people so you have backup in the event
your banker is not available, gets promoted,
or is no longer with the bank. You need to
know as many people as possible who you
can trust, and make sure they know you and
understand your business, too. This is very
important in building a good relationship
with your bank, especially during these
volatile times in the financial services industry and uncertainty in the economy.
How can a business owner begin building a
relationship with a new banker?
First, seek out word of mouth referrals.
Look for bankers that have good reputations,
who are responsive, dependable and trustworthy, have a high level of integrity, and are
willing to go to bat for their customers during
different business cycles. Meet with two or
three prospective bankers and interview
them. Ask them tough questions about how
they develop relationships, whether they
understand your industry, how much experience they have, and what their philosophies
are concerning serving clients?
Most importantly, determine if you feel
comfortable with the banker. Remember,
you are going to be sharing information
about your business that you wouldn’t just
tell anyone. Research the bank to ensure it
has the ability to meet your credit needs, a
strong capital base, a good reputation in the
community, and the product sophistication
to meet your financial requirements.
Once you meet with a few bankers and
research the bank, discuss your options with
your CPA and/or attorney. He or she can offer
direction on the technical aspects of the relationship, such as whether the commercial
banking package being offered is competitive and whether rates are attractive. You’ll
find that bankers will try to earn your business, and they may be willing to negotiate
terms in a reasonable manner.
What’s more vital: rates or relationships?
Hands down, it’s relationships, period. You
should not base your decision strictly on pricing or which institution will offer you the lowest rate. Focus on what drives good business
relationships — exceptional service, sound
long-term solutions, adding value to your
company, etc. You wouldn’t choose a CPA
that didn’t have the knowledge and capabilities to handle taxes and financial statements
or an attorney who did not understand the
law just because he or she had the lowest
fees. The same applies to selecting a banker.
You get what you pay for.
LOU POPPOVICH is the vice president of commercial banking for Huntington Bank’s Akron/Canton region. Reach him at
[email protected] or (330) 258-2359.
