If only choosing a bank were like online dating. You could just turn on your computer and sort through each institution’s profile, scanning for financial stability, convenience, lending products and all the other qualities you want in a banking partner.
Of course, there’s a big difference between dating and actually building a relationship, and that holds true for banking relationships. It takes time, effort and communication—lots of communication—to find the right financial institution.
Define the Relationship
In banking, just like in romance, the word relationship has any number of meanings. The trick is to make sure both parties are using the same definition.
What do you want out of your bank relationship? You might consider expertise, curiosity, the ability to listen, responsiveness and fun. How much should your ideal bank partner know about your industry, the economy and banking?
Do you want your relationship manager to show a genuine interest in your company and be curious to know more? Does your ideal bank partner listen not only when things are good, but also when there are concerns? How frequently does your ideal banker reach out to you?
This list of questions is by no means exhaustive. Your ultimate banking relationship will likely be as unique as your business.
Once you know what you want out of the relationship, see how potential banks and bankers feel about building a relationship. Frequently, financial institutions define themselves as “relationship banks.” What does your relationship manager mean, exactly, when they say that? One of the most frequent responses you will likely hear is that your banker wants to be a trusted adviser to your company. Great! But, what exactly does that mean again?
Don’t be afraid to dig deeper. Keep asking questions until you get concrete responses that help both parties evaluate their compatibility.
Play the Field
You will likely have to kiss a few frogs before you find a financial institution that meets your needs and a relationship manager who gets you. Once you find that combo, cherish it! But, regrettably, you’re still not finished with the banking relationship development process.
Just like in life, things change. Relationship managers move on, business needs grow and lending appetites shift. Your company’s health depends on your financial institution, so you can’t afford the upheaval of a sudden “breakup.”
It’s prudent to be casually but regularly “dating” a few other banks and bankers in case something happens with your current relationship. Get to know the other relationship managers at your current institution. Your business may never need another banking relationship, but if you do, it’s best to be prepared.
Be Worth Committing To
The challenge of the banking relationship development process is to represent your business honestly with all parties involved. You’re continuously seeking a good fit, and so is your bank. Be the kind of honest, committed partner that you seek. Hold up your end of the relationship bargain, and be the kind of company worth committing to. That effort alone will serve you now and into the future.
