At its core, banking is about deposits and loans, assets and liabilities.
But for companies to make the most strategic use of their financial resources, the quality of their banker is as important as the breadth of financial solutions offered by their bank.
A good banker is indispensable. Like a CPA or attorney, good bankers act as critical advisers and sounding boards and as sources of market intelligence and best practices. They are proactive and creative. Having listened to management describe their goals, good bankers can suggest financing options that their customers might not have considered and devise a customized loan structure to best fulfill those objectives. Bankers are also advocates for their clients within the bank, shepherding loan applications through the approval process. Finally, good bankers deliver on their promises. In today's environment, certainty of execution is especially important.
At the same time, the value a banker adds to your relationship must be based on extensive financial expertise and experience. A good banker brings:
- Financial sophistication. The more bankers know, the more options they can offer their clients.
- Industry expertise. A banker who is thoroughly versed in your sector is better able to assess your risks and see potential where bankers with more generalized experience may not.
- A single point of accountability. The ideal banker should be experienced in every aspect of lending, from structuring terms and underwriting to managing the credit.
- Extensive local contacts. Bankers know those contacts can be as valuable to customers as what they know.
Finding the right banker
If your banker falls short in any of these areas, it may be time for you to explore a replacement. Your search might begin with the products and services his or her bank offers but should quickly move on to the professional and personal considerations that make a banker exceptional. There are a number of ways that you can identify candidates to interview:
- Ask your attorney and other financial professionals for recommendations.
- Explore your professional network. Talk to counterparts at other companies, professional peers you've met while serving on community organizations, and your colleagues at professional associations.
- Get back in touch with bankers who have solicited your business. Their ability to reach out is an indication of their desire to work with you.
While the financial expertise and work ethic that bankers bring to the table are critical, it is important they are part of a financial institution that brings out their best. While assessing candidates, be sure to reach out to their bank's other customers to learn more about its philosophy and operating structure. Is its hierarchy relatively flat? Do bankers have ready access to key decision makers? Are bankers' views valued? Most importantly, does the bank value long-term relationships over individual transactions?
There's one last point you should consider when selecting a new banker: character. After all, you will be working closely with your banker for several years. You'll sleep better at night when you know your banker is someone you can trust.
For more information, visit www.cadencebank.com or call (800) 636-7622.
