According to Brentwood Bank’s Lynne
Horensky, more and more small and
medium-sized businesses are getting less and less in the way of “full service” from
so-called full-service banks.
“Big banks are increasingly more interested
in bigger accounts, leaving other businesses
to fend for themselves,” Horensky says.
“There’s a lot more to full service than there
used to be, and the big, impersonal bank
model isn’t really conducive to delivering it.”
Smart Business asked Horensky to lay out
some of the things a smaller, more customer-focused full-service business bank can offer
today’s small and medium-sized business —
and how to recognize a true full-service business bank offering when you find it.
How has the meaning of ‘full service’
changed in banking?
It used to be that full service was synonymous with a comprehensive products and
services offering — meaning it offered lots of
accounts, lots of branch offices, lots of ATMs.
These things still have their place, but for
many types of businesses, these are neither
the necessity nor the end-all they used to be.
Today, technology has brought big bank
capabilities to the smaller institutions, and
that’s helped level the competitive playing
field. It’s also allowed smaller, more specialized business banks to take advantage of the
bigger banks’ primary weakness, and put
high levels of service back into the full-service business banking equation.
Unfortunately, most banks that call themselves full service do so based on an overused and outdated notion of what that term
means, without acknowledging that its
meaning has continued to evolve. For the
business banking customer, there’s simply a
lot more to what a full-service bank can and
should offer than there used to be.
In what ways will a business benefit from this
expanded notion of full service?
The more specialized your needs (or the
more growth and expansion impacts your
needs), the more opportunity you have to
find a better business banking fit. Generic
products and services may be perfectly
adequate for generic needs, but in a true full-service environment, you will find the capability and flexibility to address very unique
needs, as well. Helping you deal with unique
operating circumstances or growth-related
issues should be the first priority of any full-service bank offering.
How can you tell the difference between
basic service and full service?
A more evolved full-service offering will
have specialized niche capabilities and core
competencies that are really worth going out
of your way to find, if you know where and
why to look for them. For instance, an organization that’s committed to providing truly
responsive loan servicing can make a huge
difference for the business that finds itself in
growth and expansion mode. A business
loan involves more than the dollar transaction, it involves terms and conditions and
servicing after-the-fact. Offering the transactional essentials is one thing. Providing a
level of servicing that is locally based, highly
personable and extremely user-friendly takes
the transactional essentials to the next level.
Combine that with flexible, custom-tailored
terms and conditions, and you add a whole
new dimension to full service. The ability to custom tailor around the unique needs of the
business customer may be the true measure
of what a real full-service bank can and
should be able to offer.
What drives the delivery of full service?
Finding the best combinations of available
products and services won’t happen until
someone can assess the unique needs of a
business. A relationship manager or business
solutions specialist is someone who is
equipped to drive the process and serve as
the point person for analyzing specific
growth and problem-solving opportunities.
With owners of small and medium-sized
businesses, there is more gray area between
business and personal banking needs. These
individuals are understandably affected by
time poverty and probably need full-service
attention more than anyone. The irony is that
those who need it most are often the ones
who fall through the cracks and benefit the
least from the traditional big bank full-service
model. If you are looking to put service back
into your full-service banking relationship,
you should start by finding the relationship
manager who will be there to deliver it.
What are other keys to getting more out of a
full-service relationship?
Business customers have to get out of the
generic products and services mindset.
Today, a true full-service bank can find ways
to achieve a better fit — even to the point of
customizing around your needs — using
products and services as the primary building blocks rather than the end-all solution.
The real key to getting everything you can
from a full-service banking relationship is to
accept that there are possibilities that may
not reveal themselves unless (and until) you
are willing to sit down and open yourself up
to them. That means taking the time to let
someone get to know what your business is
all about, who can gain some insight into
how the potential benefits might be applied
in your situation. You may not feel this is the
most urgent thing you have to do, but it may
be the most important thing you do.
LYNNE HORENSKY is a business development officer for Brentwood Bank. Reach her at [email protected] or
(412) 409-9100 x284.
