Ask the right questions
Communication with your bank and your banker is as important today as it was 10, 20 or 50 years ago — and, of course, with smart phones and the ability to talk almost immediately with just about anyone anywhere in the world at any time, communication has never been easier, either. But sitting down with your banker in person rather than over the phone remains the best and most effective means of communication, even if it might feel like some sort of lost art. That goes both ways, too; you should want to meet with your banker in person, but he or she should also want to meet with you.
“It is imperative for businesses to work closely with their banks to maintain healthy and productive companies,” says Todd Barnhart, senior vice president and manager of deposits, PNC Financial Services. “The better your bank knows you, the better they’ll know your business. It’s important to keep an open line of communication at all times, not just when it’s necessary to conduct your business. At the minimum, businesses should consider sitting down with their banker for an annual business review.”
It’s important for you to ask the right questions, too, especially if your bank merged with another bank during the recession or if it closed its doors and left you looking for a new bank.
For example, what will the bank offer you in terms of its resources? Will you work with one banker or with a team? As your business grows and changes, will the bank be able to help you meet your evolving needs? And how will the bank support you during your growth or expansion? Will the bank and your banker be proactive and visit your offices or locations in order to learn more about your company and provide trusted advice? Or will the bank offer nothing more than answers to your banking needs?
Think of that first conversation like a first date, of sorts. You want to learn as much as possible so you can determine whether to go out on a second date. If all goes well, maybe those dates will turn into a long-term relationship.
“There’s an increased emphasis on relationship, and the importance for a small business owner of having a relationship with the bank and not to view banking as a commodity, because when times get tough, you really need to have that relationship,” says Matthew R. Wyner, senior vice president, business banking, KeyBank. “From a banking standpoint, there’s been an increased emphasis on the importance of rolling up your sleeves, getting down in the trenches with customers and really understanding the challenges they’re facing and what they need to be doing to be successful.
“If a company is having challenges, if they’re being proactive in communicating that and making sure there are no surprises, those are the relationships we’re able to work the most effectively with.”
