Latest comments for http://www.ababj.com , comment 0 to 3 out of 3 comments http://www.ababj.com Wed, 22 May 2013 22:24:09 +0100 FeedCreator 1.7.2 http://www.ababj.com/myblog/why-lenders-are-salesforce-and-why-they-should-admit-it-already.html#pc_796 Business credit is increasingly a retail product at the smaller end of the size spectrum. This is going to gut the product line and leave it something that virtual credit illiterates will do by scoring and a set of inflexible rules. The customer will be worse for it in the end. - Response from Ed Sat, 12 Feb 2011 23:02:45 +0100 http://www.ababj.com/myblog/why-lenders-are-salesforce-and-why-they-should-admit-it-already.html#pc_795 Ed makes good comments and they are correct. Today's loan officer, ususally referred to as an RM or Relationship Manager needs to retain their clients, grow their book, and get their deals approved. All of this requries sales skills. We can learn from the 60's and 70's. Back then, bankers were known to have drinks at lunch, be on the golf course, and be somewhat mischevious. They also: 1. Were known by everyone in town 2. Had strong personal brands (whether good or bad), 3. Called on their clients on a regular basis and in person, and believe it or not... 4. Mde calls on prospects on a daily basis! I asked one of our longest time bankers here about his days as a branch manager. Back in the 60's, all credit was in the branch and there were no centralized services for credit. He told me his job was 2 streets. I said "What?" He said that his office wa at the intersection of two major streets and his boss told him to get to know every business person on those two streets and call on them regularly and ask them for their business. Mind you, I said "business person", not "business". You were to form a relationship with each business owner or influencer and work on them. Today's RM expects a high salary, a Business Development salary, but then they do not sell. They will talk to their client, especially about covenants, but they are not likely to ask for referrals, and they certainly don't do any cold calling or prospecting. In my market, WFB does have calling officers and the program is not highly successful. The calling officers are able to bring business in the door but the bank can't keep it because the service levels are low after the first handoff and local bankers will not talk to the new clients because they did not earn any comp on them at the beginning. Banking is a people business but the RM job often attract analytics, and more importantly, the people doing the hiring are often analytics themselves and are drawn to that personality. Our industry better wake up one day and stop relying on location and technology dominance. - Rauly Butler Sat, 12 Feb 2011 12:12:27 +0100 http://www.ababj.com/myblog/why-lenders-are-salesforce-and-why-they-should-admit-it-already.html#pc_794 In my professional career as a commercial banker in Puerto Rico (22 years) I always placed a great amount of effort in delivering an effective sales pitch to win a prospective customer or avoiding loosing one to the competition. That is the last step of a process that starts with a thorough credit analysis, following the five C's of credit. However, when banks overemphasize the sales part of the process people with high sales skills and no knowledge of commercial credit analysis and safe and sound lending practices are placed at the helm of the sales effort. History will tell you that this is the biggest mistake a bank can do, as they end up paying a steep price with higher levels non performing assets, loan write-offs, net looses, and non complying capital structure. That's what happened in the mainland, and Puerto Rico was no exception. And history will repeat itself if banks don't get it straight. - Freddy J. Ortiz-Diaz Thu, 10 Feb 2011 21:28:00 +0100