Secrets to Increasing Commercial Accounts at Your Financial Institution

Posted on Tue, Mar 03, 2015

Increasing commercial accounts at your financial institution provides you with new opportunities to increase your deposit base, diversify your account portfolio and cross-promote products and services. Building relationships with local businesses by understanding their needs and providing genuine solutions to overcome their obstacles not only makes your financial institution a valuable resource for business accountholders but also increases opportunities to acquire employee personal accounts.

Financial institutions are focused on acquiring and retaining accountholders but too often overlook the value local business accounts can deliver. In fact, business banking relationships are more profitable and have a higher retention rate than consumer retail relationships. 

Building Business Accountholder Relationships

Business owners want a trusting, personal relationship with their bankers, even with the convenience modern technology provides. This gives community banks and credit unions an advantage in building these connections within their local communities. Small and mid-size financial institutions have other advantages in attracting local businesses owners including a greater ability to lend profitably to local businesses and serve smaller business relationships more effectively.

Demonstrating Interest in Accountholder Businesses

While community banks and credit unions have many advantages over big banks, it’s important for small and mid-size financial institutions to show small and mid-size business owners that you care about their business by understanding their needs and challenges. Just as community banks and credit unions differ from big banks, local businesses have their own individual needs. Business owners appreciate when their financial institutions take the time to learn about their products or services. In addition to understanding their business needs, you will see opportunities to provide them with solutions that fit them. 

Offering the Right Solutions to Become Trusted Financial Advisor

While business owners generally use between 12 and 15 bank products, only 2 to 3 usually come from the same financial institution. By focusing on your business customers and strengthening relationships, you become a trusted advisor for their financial needs.

Small business banking provides community banks and credit unions with the opportunity to increase average account balances, multiply opportunities for new accounts by reaching their employees and customers, and serve the businesses that are a foundation for the local market. 

What sets your financial institution apart from the others when it comes to business banking? Find out if you have the right tools to succeed at business banking by contacting our business banking experts at 713.868.3333 or click here for a Business Banking consultation.

Tags: Community Bank Programs, interchange income, Increasing Market Share and Profitability, Customer Acquisition and Retention Strategies, Small Business Banking, Business Banking, Pinnacle Financial Strategies, Retail Banking, accountholder acquisition, accountholder retention, SMART Business Banking