As community bankers, you wear many hats in your local economies. You’re not just financial service providers; you’re confidants, advisors and connectors. Your role extends far beyond processing transactions or approving loans.
You’re often the first stop for small business owners facing challenges or seeking opportunities. Sometimes, what customers need most is a sympathetic ear — someone to listen to their concerns without judgment. Other times, they’re looking for suggestions based on your experience and financial expertise. And frequently, community bankers serve as vital connectors, linking clients with other professionals or resources that can help them overcome obstacles or seize new opportunities.
Consider the case of Mike, a local hardware store owner and loyal bank customer for more than a decade. When a big box store was set to open nearby, Mike went to his banker about the impact on his business. He wasn’t looking for a loan; he needed insight and support. The community banker listened to his concerns and helped him analyze his business’s strengths and weaknesses. Drawing on the bank’s network, the banker connected Mike with a marketing consultant and introduced him to other small business clients who had successfully navigated similar challenges.
With this support, Mike developed a strategy emphasizing his store’s personalized service, expert advice and community roots. He expanded his offering to include specialized tools and workshops for DIY enthusiasts — something the big box store couldn’t match. A year later, Mike’s business was thriving, with revenue up 15 percent and a more loyal customer base than ever.
This example illustrates the power of relationship banking. By fostering deep connections with your small business clients, you can gain insights into their challenges and aspirations that go far beyond what’s visible on a balance sheet. This knowledge allows you to provide tailored solutions and proactive support that can make the difference between a business struggling to survive and one poised for growth.
Building these relationships requires more than just friendly service. It demands a genuine commitment to understanding the day-to-day realities of small business owners. This might involve spending time shadowing your clients, attending local business events, or creating forums where small business owners can share their experiences and challenges. By immersing yourself in their world, you become better equipped to anticipate their needs and offer meaningful support.
Technology plays an increasingly important role in banking, but it should enhance rather than replace personal relationships. Digital tools are best when they streamline routine transactions, freeing up more time for meaningful interactions with your clients. For instance, a user-friendly online portal for loan applications could be complemented by personal follow-up calls to discuss the business owner’s plans.
As community bankers, you’re uniquely positioned to nurture and support small business growth through financial education, networking opportunities and mentorship programs. Organizing workshops on topics like cash flow management or digital marketing, leveraging your network to bring in local experts, not only provides valuable knowledge to clients but also positions your banks as true partners in their success.
Cultivating a culture of support within your bank is crucial. Every employee should understand their role in supporting small businesses. This might involve cross-training staff to understand the challenges faced by small business owners or implementing reward systems that recognize employees who go above and beyond in serving these clients. By aligning your entire organization around the goal of small business success, you create a powerful ecosystem of support that sets community banks apart from larger competitors.
As we look to the future, community banks will continue to play a vital role in small business success. By deepening your understanding of your clients’ needs, leveraging technology to enhance relationships, and fostering a culture of support within your organizations, you can ensure that community banks remain indispensable partners to small businesses. Remember, your success is intertwined with theirs — by helping them thrive, you secure your own place as vital institutions in your local economic landscape.
Peter Quayle, owner of The Alternative Board-St. Paul, empowers small business owners through 1:1 coaching and peer boards, fostering clarity and strategic growth. Contact Peter to learn more about starting a peer board at your bank: [email protected] or (651) 230-6485.