How Business Banks Can Become Business Partners
In order to survive — and thrive — in changing times, banks need to evolve from the limited role of being a business bank to becoming a long-term business partner.
Would you rather be seen as a business bank or a business partner? Most banks, if not all, would opt to be a true business partner. But what does that mean, exactly, and how do you get there? Even the most well-intentioned banks often don’t understand what it takes to build a true partnership.
The key? Technology that adds real value. Elevate your relationship from a common business bank to a highly valued business partner with tools that can help both you and your customers grow.
The Limitations of Business Banks
What’s wrong with being a business bank? Nothing, of course, other than its obvious limitations. Business bankers are common, and easy to fire. A partner, on the other hand, adds value and is much less expendable.
Traditionally, the interaction between a business bank and its customer ends with a yes or no response, as in “yes, we can help you with financing” or “no, we cannot help you.” Binary banking represents the old way of doing business and, in our opinion, is on its way out.
For a business bank to become a true partner with their client, this dead-end dialogue must be expanded. Business partners can do much more for their clients than simply finance a loan. When harnessing the power of technology, deepening these relationships to partnership status requires banks to invest minimal effort and resources.
What it Means to be a Business Partner
According to a recent FDIC report, anywhere from 77 to 89 percent of business banks don’t offer their customers the ability to apply for financing online. Beyond the convenience and ease of connecting with clients via the web, access to financial information online can help banks build a mutually beneficial partnership that can grow with the client.
A business partner is an advisor that can help steer a small business along the path to success. Sound complicated? It’s not when you have access to your client’s financial information through a platform like FINSYNC.
If your client doesn’t qualify for a loan, for example, the conversation doesn’t have to close with a “no” that does nothing to continue the conversation. Instead, FINSYNC lenders can tap into historical financial data to analyze their client’s cash flow in order to show the business exactly where they need to be in order to qualify for a loan in the future.
Armed with this valuable information, a business is given an actionable goal that comes with the assurance of qualifying for financing, should that goal be met. And therein lies the value of a partnership.
Partners for the Long Term
This type of guidance from a business partner lays the foundation for a long-term relationship as opposed to a one-off interaction that often ends with a discouraging “no, we can’t help you.”
When the conversation continues with, “Here’s where your business needs to go to qualify for financing,” the applicant not only has a roadmap to follow, but knows exactly where to go for funding when they’re ready.
Better yet, for both the bank and their customer, when you’re connected through a lending network like FINSYNC, there’s no need for the business to re-apply for the loan. When they hit the numbers laid out for them, qualifying for a loan is as simple as one click.
The same goes for a business that has secured a loan previously through the FINSYNC Lending Network. When the applicant needs additional access to funding, they can secure a loan with a few quick clicks in a matter of minutes, significantly reducing the effort required by both the bank and their client.
There’s no new application for the bank to review, as the relationship has already been established and the online financial information speaks on behalf of the business. These types of streamlined transactions save time, resources and frustration on both sides, and make for the kind of partner relationship that businesses expect in today’s digital world.