Every organization needs a bank, but not every organization has the same needs when it comes to its banking relationship and services. While government entities — cities, school districts, etc. — also require this essential business relationship, they may not know that there are government banking services available that go beyond traditional banking.
While the basic banking needs of the public and private sectors are similar, the demands each faces are often very different. Government entities face more stringent audits, tighter budget restrictions and state and federal regulations. Because of this, government banking is a highly specialized process, one that requires specific skills and a strong bank.
“In banking, all customers have different needs,” says Logan Thibodeaux, a relationship manager and an industry specialist focusing on the government sector for Wells Fargo Bank. “Government banking offers a solution to the specific and unique needs of public entities.”
Smart Business spoke to Thibodeaux about the differences in government banking and how they can benefit public entities.
How can banks inform public entities about the existence of government banking?
Like anything else, it’s about working the phones, pounding the pavement and spreading the word. Nothing is better than a good word-of-mouth referral. Once you establish a great working relationship with one government entity, it’s easier to go out and build deep, long-lasting relationships with other government entities. Also, you have to stay active in the community. Attend conferences, network, and get involved in charitable endeavors. Great human relationships can lead to great business relationships.
What should an organization look for in a government banking program?
Expertise and broad capabilities: The bank’s relationship managers must be seasoned professionals who understand the unique needs and challenges facing government and institutional clients and have the power of a national practice that combines both specialized relationship banking with capital markets-based financial solutions.
Coast-to-coast practice: Look for a national government and institutional practice with clients representing state and local governments, not-for-profit health care organizations, institutions of higher education and tax-exempt institutions.
A trusted adviser: The bank’s clients should think of it as a trusted adviser, and it should be committed to earning this reputation by leveraging its expertise to bring relevant ideas and recommendations that will help them articulate and achieve their organizational goals today — and 10 years from now.
Fast, local decision-making: It’s beneficial if the decision-making authority is at the regional level so local relationship managers can provide rapid responses to credit requests. Ask the bank if it has a dedicated service team available whenever it is needed.
Treasury services leader: The bank should be able to provide a robust offering of treasury services that meet a high level of product quality as well as your current and emerging needs.
