With so many different people to
deal with on a daily basis and
with the inception of technology
such as cell phones, e-mail and
BlackBerrys, it’s hard to feel like you’re
creating any personal connections in
business today.
However, that personal touch is still
out there, and relationship banking is
one way to get it. Relationship banking
gives you the satisfaction that someone
knows you and cares about the financial
side of your business.
“When you consistently work with the
same experienced person that has a sincere interest in your concerns and successes, you know you’re not alone,” says
Clayton Kinlan, a relationship banker
with Brentwood Bank.
Smart Business spoke with Kinlan
about how to develop a relationship with
your bank and how relationship banking
can help your business.
What is relationship banking?
In a word, trust. When relationship
banking is done properly, you trust your
banker to the point that he or she is the
first person you call to discuss business
dealings, even when you have needs not
related to banking. With this rapport,
both parties know the abilities of the
other and are comfortable enough that
they become referral sources. Many of
us have learned the value of networking
and generating referrals. On average, all
of us know 250 to 300 people. Who in
business doesn’t want referrals, the most
profitable form of advertising?
In an action, relationship banking
means being proactive. It’s having a
banker that knows the obstacles you’re
facing and does something to lessen or
eliminate them. You don’t want a banker
who follows the 1990s banking approach
of: ‘How do I reach my goals?’ You want
a banker that says: ‘How can I reach
your goals?’ A good relationship banker
will work for you all the time, even when
you’re not expecting it.
How can businesses develop a relationship
with a bank?
Really, your banker should be developing a relationship with you. Look for a
banker that reaches out to you personally through phone calls, e-mails, handwritten notes and/or visits. And make
sure your banker is doing this when the
bank doesn’t need anything. This shows
you that you are not ‘out of sight, out of
mind.’ If your banker does this consistently and sincerely, you know he or she
has a genuine concern in your needs and
wants.
What can banks provide to businesses
through relationship banking?
There are two primary benefits to be
gained by utilizing a relationship banker
— stability and peace of mind.
Speaking to stability, the relationship
banker should become your contact for
whatever needs you may have. Ideally, at
the inception of the relationship, you
should be introduced to team members
that you will interact and conduct daily transactions with. But, your relationship
banker is your point person, the first one
you call for deposit, lending, cash management and online banking needs.
Speaking to peace of mind, the relationship banker should be consistently
reaching out to you without the hidden
agenda of fulfilling a bank requirement.
He or she should be providing you an
outlet to review your changing needs and
the options available to meet them. Your
banker should customize products and
packages to meet your special needs.
Take, for example, a nonprofit organization. A good relationship banker will put
together a package that increases cash
flow, provides FDIC insurance exceeding
traditional limits and improves the organization’s time management.
If small business owners know they
can have their banking and financing
needs serviced, face to face, without
having to leave their places of business,
their time management will be greatly
improved. True relationship banking
means a long-term commitment with the
customer.
What happens if businesses don’t develop
good relationships with their banks?
‘What is your name?’ and ‘Oh, you have
an account with us?’ are painful things
for a customer to hear. If you hear this
from your banker, you know you’re simply conducting a transaction and not
participating in a relationship with the
bank. At this point, there are two events
occurring — first, you’re just a number
to the bank and, second, you, the customer, have become frustrated. What
you’re missing is someone who will
respond quickly to a need and seek solutions that may not already be preprinted
on a promotional piece. In these historical economic times we’re living in, just
think of the lost opportunities that are
occurring by not having a relationship
banker that you trust.
CLAYTON KINLAN is a relationship banker at Brentwood Bank. Reach him at (412) 409-9000 or [email protected].
