Banking Relationship Management Insights from Barbara Sanfilippo

Do your customers view your bank or credit union as their financial partner or just another errand?

We know, it really hurts to think that some customers or members equate a visit to your bank or credit union with shopping for groceries, picking up the dry cleaning or getting the SUV washed. But if all you have is their transaction business then they are likely to see you as “just another errand”. That doesn’t leave much room for expanding the banking customer relationship. “Sorry, I only have time to get these travelers checks. The shoemaker closes in about 15 minutes”. Not much room for being their financial partner in that situation. We feel your pain. And what about those customers who only use your automated services? How often have you said, “We need to do something about getting more business from our customers or members who never visit our branches?”

Customers Will Go Elsewhere for Those Profitable Services

Here’s a painful, real-life example, I experienced a while back. A friend mentioned at dinner she was going to be checking out a few financial planners. I suggested she also inquire as to what her bank could offer. Jenny said, “Oh they probably don’t offer financial planning and besides I already have some names”. A few months later her $100,000 CD and $25,000 money market account were invested elsewhere. To rub salt into the wound, she got life insurance with a company her financial planner recommended. Don’t you just hate when you lose business like that?

Most of Your Customers or Members Don’t Feel a Relationship With Your Bank or Credit Union

Here’s what’s going on. We know for a fact Jenny’s bank provides excellent investment, insurance and financial planning services, but because she doesn’t visit her bank and prefers online services, she was disengaged and had no one that would function as a banking relationship manager to reach out to her (whether they have that title or not). By the way, Jenny had four products: a checking account, a credit card, the CD and the money market account. Point of story, just because a customer or member has multiple products with you, doesn’t mean they are loyal advocates or feel a sense of relationship with your bank or credit union. You have their transaction business but that may be it.

The sad part is a vast majority of banks and credit unions are missing out on a golden opportunity to grow organically and sell more profitable services by expanding relationships with existing customers and members!

So what’s the answer? There are many factors to consider but in this banking relationship management series we’ll be commenting on some proven and powerful strategies.

We welcome your thoughts, questions, comments and best practices in reaching out to disengaged customers or members.

Agree or disagree? Do let us know what you think by scrolling down and commenting below.


Rate Your Organization on Banking Relationship Management Basics

boxes-clipboardIf you’d like a preview of the 12 areas we’ll be covering that impact building banking customer relationships or member relationships or you would like to rate your bank or credit union on 12 key areas to build customer and member relationships and trust, create loyal advocates and increase referrals and business. Just click here.

Read How To Increase Revenue and Profitability Through Relationship Building and Creating Advocates: Get Our Complimentary White Paper


The Banking Relationship Management Experience – A Strategy for Becoming a Trusted Financial Partner and Increasing Revenue and Profitability

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