Fire Your Banker, Hire A Relationship Manager!
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From Bank Relationship to Strategic Partnership: The Right Way Presented by David Neshat Patricia Mullin, MBA, CCM Laurel Egan Kenny, MBA, MS
Transcript of Fire Your Banker, Hire A Relationship Manager!
From Bank Relationship to Strategic Partnership:
The Right Way
Presented by
David Neshat
Patricia Mullin, MBA, CCM
Laurel Egan Kenny, MBA, MS
What You Will Learn Today
• What is a strategic bank partnership?
• How do you evaluate a banking relationship?
• How can you capitalize on the relationship?
• What are the warning signs?
• You have tremendous negotiating power.
Audience Poll: How do you choose your Bank(s)?
Close proximity to the office(s) It’s always been this way The guy before me did it I prefer not to deal with “Bank ABC” (the other bank) Somebody at my company knows somebody there They gave me a loan, so now I owe them Others? I followed my Relationship Manager there
Strategic Partnership
What defines a Strategic Partner?
Relationship between two companies that have a shared
mission
Led by a relationship manager (supported by a team)
dedicated to the client’s unique industry and business
Proactive industry research, trending, analysis
Develops, maintains, customizes state-of-the-art
treasury solutions
Extension of the treasury manager’s team or business
Your Team: Key Players and Roles
EVP, Director
CEO
Operations Team
Business Line RM ( Commercial Banking)
Implementation Manager
Product Development Manager
Client Service Team
Business Line RM (Treasury Management)
Trainers
CreditTreasury Cap Mkts OtherTrade
Strategic Partner
FX
RelationshipManagerYOU
Business strategy and management
Industry analysis
Competitive intelligence
Marketing
Your Business
Why you need a Strategic Partner not just a Bank
Your Senior Relationship Officer
World-class solutions / technology Competitive pricing / cost control Risk transfer
Single point of contact Your interests in mind on the other side of negotiation Vast experience managing complex relationships Knows business strategy Innate knowledge of YOUR business model and industry Backed by team / senior management / decision makers Communicates in your desired style
Needs Assessment for Treasury Managers: Be honest with yourself!
Where do you want to be?– Refer to and refine your long-term strategic plan– Where do you want to be and how will you get there?
Know what you know and what you don’t know!– Engage all levels of your organization in discussions
Decide which (additional) functions to in / outsource– Understand your core competencies, differentiators, market niche– Compare apple to apples
Is your existing bank doing everything it can to make you successful?
Choosing the best partner for YOU
Translate your needs assessment into a wish list
What is financial strength / health of your bank?
Do you like the person / people?
Capitalizing on the Partnership:In ways you may not have thought about
Your Relationship Manager can help you with:– Selling your ideas to your senior management– Marketing– Understanding the short and long term strategy/ objectives– Industry trends, research and analysis, competitive intelligence– Reality checks– Perks: Business is not “ALL business”
Benefits to you and your business:– Redeploy / promote your staff – Compete through access to the industry’s best tools– Reap cost control – “Fix” your variable costs
‘Top 10’ Bankers’ Secrets
1. Replacing you as a client is VERY expensive2. Lack of a scorecard or Account Analysis may open the door for a
competitor (Good bankers do not like to play Defense)3. Retention goals are part of RM’s performance goals/compensation4. Few banks truly differentiate themselves or understand their niche
– Even fewer banks market those differentiators
5. Cross selling opportunity is important in relationship pricing6. You are managed, serviced, even dropped based on your “spend”7. People like to work with people they like8. Enterprise systems are tracking your every move9. Good RMs are “Sticky”10. Free accounts may work for your business
“Yellow” Flags
Banks in acquisition / merger mode– Lack of focus on the business, product development, YOU
Excessive turnover Layoffs Lack of access to management Communication breakdown
between relationship managerand his or her internal team
“Free” – It comes with a price
Steps YOU can take to make your Partnership the best it can be
Set service expectations from the proposal stage
Establish milestones and celebrate success
Communicate both ways
Understand the financial strength of your bank relative to its
competition for what’s important to your company
Re-evaluate objectively and proactively share your findings with
senior management
Revisit your strategic plan at least annually
Manage well and keep score
Manage Partners using Service Level Agreement. Measure using Scorecards
Use industry standard or create your own
Should contain everything you can quantify with your business:
performance, tangibles, intangible items, frequency / method of
communication / meetings
Measure all banking relationships in the same way
Problem resolution MUST HAVE a financial impact
Refine document as business changes (volumes +/-, products used)
Ensure support team is empowered to get things done in RM’s absence
Ensure seamless transition / business continuity should RM leave
If sold, hold introductions with new bank ASAP for a smooth transition
Should be important components of clients’ overall agreements
What we talked about
Strategic Partners offer a comprehensive suite of services – beyond banking. Use your partner wisely.
– Take the time to understand your core competencies– Decide what you need and want to do– Understand what can be outsourced– The more you “invest”, the more your partner will “invest”
Give yourself a promotion. Choose business strategy and vendor management over “Do it Yourself”.
Use your negotiating power to get what you want from existing partners or to select new ones.
Play offense, not defense in managing your Bank.
Contact Information
Laurel Egan Kenny, CEO, Principal, Turningpoint Communications
339-793-3485 • [email protected] • www.turningpointcom.net
Patricia Mullin, Vice President, Treasury Mngmt, Cambridge Trust Co.
617-441-1408 • [email protected]
David Neshat, Sr. Manager Global Treasury Ops, Cabot Corporation
617-342-6165 • [email protected]
