The Significance Building A Strong Relationship With Your Bank
If you have a good relationship with your bank, you can enjoy some financial benefits. Those include preferred rates on loans; tailored products that match your needs; and strategic advice when you’re trying to meet your business goals.
To build a strong relationship with your bank in Raleigh, NC, you should be open with them, within reason. That means sharing your company’s current challenges and long-term strategy regularly.
1. Better Loan Rates
Having a strong relationship with your bank can pay off in several ways. It could mean lower loan rates on mortgages or business loans; it could help you get better terms for other financial services like checking accounts; and it could also allow your bank to recommend other products or services that would benefit your business. The key is to build a long-term relationship that benefits both you and your banker.
Ultimately, building that relationship starts with regular outreach. This is how you transition from being an account number to a valued customer. Consistent, positive outreach shows your commitment to your bank and will allow your banker to champion you.
Banks typically set interest rates based on a variety of factors, including the current Prime rate (the best available) and an analysis of the borrower’s creditworthiness. Having an established relationship with your banker can help you qualify for these lower rates because the bank knows that you are a reliable customer who pays back your debts on time.
Moreover, a banker can provide you with the most accurate picture of your creditworthiness because they will have comprehensive knowledge about your finances. This makes them a more valuable resource than an online lender, which often only considers your credit score and doesn’t offer comprehensive reports on your history.
2. Better Customer Service
Having better customer service at your bank is something that everyone wants. When you have a problem, you want to be able to talk to someone immediately to get it fixed. However, many banks don’t do that and leave customers frustrated.
This is because it can be challenging to provide great customer service when you have a huge amount of demand. Moreover, you need to make sure that the customer experience is consistent across all channels. This is not an easy task and it can be expensive if you rely on human resources alone.
In order to improve customer service, banks should invest in technology and make sure that their customers are getting the best possible experience. The right technology can help you reduce call center volume, improve the speed of customer resolution, and enable self-service capabilities for customers.
Another way that banks can offer better customer service is by cross-selling their products. This means that they offer multiple financial services to their customers, such as savings accounts, insurance, investments, credit cards and safety deposit boxes. This helps them increase their revenue while also creating loyalty. Plus, it makes it easier for them to provide financial advice to their clients because they know more about their needs. For instance, they may be able to recommend the right type of savings account for you based on your income.
3. Better Advice
Your bank will be able to provide you with better financial advice on how to manage your business finances. They will have a clear understanding of your business and can give you tips on how to save money and increase profits. This will help your business grow and prosper. They may also be able to identify potential business opportunities for you or recommend professional contacts that your business should know about. However, this requires a strong and honest relationship so that they can provide you with accurate and worthwhile advice. Nurturing this will benefit both parties as they will be able to serve their customers better.
4. More Opportunities
Whether you’re looking for a loan or trying to find ways to improve cash flow, having a banking partner that understands your business goals can be a huge benefit. Especially when it comes to large financial institutions that often push away unprofitable customers, relationship banking can help ensure your bankers are invested in helping you grow your company.
For example, a banker that knows the ins and outs of your cash flow can help you discover tools to better manage invoices and keep track of your cash. They can also help you find strategies for automating payroll and international services. Plus, they can point you in the direction of other resources, like business credit cards to help manage expenses and build credit, or even insurance.
Relationship banks are also more likely to offer incentives for you to open multiple accounts, such as higher interest rates on savings or reduced fees for redundant bank products. They may also have connections throughout the community, which can open up more opportunities for you to expand your company.