According to CFO magazine citing a survey by Greenwich Associates, ‘an historically high number of small and midsize companies have put their banking business out for bid.’
19% of midsize companies and 16% of small businesses indicated plans to do so in 2011. Greenwich asserts than in a typical year, only about 10% of companies switch banks.
Why are they switching?
The top driver for small business was the current level of customer service. Also cited were a desire to reduce banking fees and access to new sources of capital.
And related to the economic challenges and the credit crisis, in some cases the companies’ needs are just not aligned with the capabilities of their banks.
What is a banker to do?
- Don’t assume your banking clients who have stuck with you thus far plan to do so. You may be the last to know.
- Prioritize your current clients, get in touch with the keepers and stay in touch
- Prioritize your prospects, get in touch with those you want and stay in touch
What are you doing?
What are you and your business development and business lending colleagues doing to connect or reconnect with business borrowers?
- Calls or visits?
- Resources such as business seminars to help them be successful?
- Referrals to their business of potential customers or advisors?
Or something else altogether?