Does your banker process your transactions, or are they an external partner in your business? What is a business relationship manager, and would you benefit from working with one?
With almost 20 years of experience in banking with small businesses, Westminster Savings Credit Union’s Vikram Behla has seen how effectively a business can operate when it has a reliable relationship manager, and he helps break down what makes them so effective.
Q: How is a business relationship manager different from other financial advisers?
A: Banking products are a commodity, but key differentiators are the values of the financial institution that you are dealing with and your relationship manager. A relationship manager works with you and adds value where possible, rather than just providing financing or opening an account for you. They invest time in understanding the business they are dealing with and become an external partner in it.
They should ask questions about your business. They don’t just give what’s asked for, but try to add value by discussing various options that haven’t been considered and recommending the best solution. Simply put, a good relationship manager wants to help you and your business succeed rather than being only interested in hitting their sales targets.
Q: How can a relationship manager help an established small business?
A: Today’s business world is fast-paced and constantly changing. In order to build a successful business, one needs to focus on their clients and industry, and it is difficult for an owner to keep up with their own business while also dealing with banking, taxation, changing laws and other hurdles.
The wrong type of financing can destroy a business no matter how well it is operated, and owners need good advice from someone they can trust. Having a good relationship manager is like adding an external partner to the business, like an accountant or a lawyer. If you have trusted and reliable individuals in these roles, it frees you to focus on what is important.
Q: What sets apart a good relationship manager?
A: Good relationship managers are confident in their skills, and always do what they say. They understand that business owners don’t have the time to know everything about banking, and try to simplify things without cutting corners. With a good relationship manager that educates and helps with major decisions, an owner doesn’t need to spend time worrying about issues with their banking. They know their relationship manager will take ownership.
All the time we come across stories of frustrated business owners not hearing back from their relationship managers. Either the banker is inexperienced and isn’t confident in responding, or the industry’s high turnover rate saw the banker leave and the owner’s request lost. In my experience, an owner would rather have a definite answer than no answer. A responsive relationship manager should get back to you within reasonable time with a workaround or let you know an ETA.
Q: How can owners ensure they have the right relationship manager?
A: The right relationship manager will be a trusted external partner, so you need to verify that their values align with yours. It’s also important to make sure that they’re experienced. The banking industry has high turnover and not everyone is an expert. You want someone that knows what they’re doing.
A good measure of experience is whether or not the relationship manager is part of your community. A good relationship manager is a connector in the community and can help you connect with local professionals that will help you with your business. Ask your friends if they know someone who is good, and ask them if they hear from their relationship manager regularly. See who people have enjoyed working with, and who advocates for the businesses they represent.
Q: What services should owners see their relationship manager about?
A: Owners should go to their relationship managers for any banking-related services. At Westminster Savings, that would include everything from chequing accounts to business loans, lines of credit, mortgages, personal banking and cash management services. Whether you’re reaching out electronically or in person at a branch, a relationship manager will be able to help you out.
