by Amanda King | Financial Institutions, Resources
Improved Relationships = More Money As a financial lending institution, you need to be able to balance risk and relationships. Beyond balancing, you need to build stronger relationships between you and your commercial customers. Improving your relationship banking can ultimately increase revenue for your lending institution. Relationship Banking Relationship banking is when financial institutions use their personal knowledge of the borrower over time to overcome roadblocks. This personalized decision-making gives the loan approval process more flexibility. Reasons to Improve Your Relationship Banking By taking the time to build relationships with your clients, relationship banking increases revenue for lending institutions. It increases the likelihood that the borrower would return to your institution for future loans. That means there could even be more referral business. Customers like personalized service (who doesn’t love some individualized catering?). So when you build a personalized relationship with each and every one of your customers, that gives your financial institution an edge over the larger institutions who don’t have the same proximity to the community and have a larger customer base. And, long-lasting connections with your customers allows you to stand out against competing lenders who are all vying for the same business. On the other side of lending, your borrower benefits, too. They don’t need as many collateral requirements over time. That personalized service goes a long way in increasing the likelihood of loan approval and the longer your relationship lasts with the client – there’s more understanding of their needs. It’s also important to keep in mind that there would be increased credit availability the longer the relationship endures. How to Improve Your Customer...
