Relationship Banking Gets Tested.
In today’s market, banks that once touted their relationship banking services are experiencing quite the test. What was once a friendly phone call and a quick approval is now slowing down and subject to the same tightened underwriting stance that most of us experience. This has many high net worth customers and business owners not too happy and phones are blowing up. Sure, everyone knows that the bank needs to be careful, but private banking executives are worried that this might push their big fish clients to go swim in another pond. A fantastic opportunity for some smaller local banks to get a big catch…I have already heard of some making a switch.
Private banking relationships have always been around. It is a service that most normal banking clients do not pay attention to or qualify for due to their deposit levels. It is a more personal service level with a nice dressing of courtesies. Often the bank will make creative exceptions based on the strength of their deposits and overall portfolio held with their bank. A much needed and valued service for those who happen to be apart of it – but those clients need more than ever to keep things in perspective during this challenging economy. The slow down or tightening is nothing personal and your Private Banker should be conveying that. Be patient and things will improve and lending will start moving again. Additionally the bank should be communicating regularly to reinforce that input and that in deed you are valued.
As for the rest of us, it might just be nice to get a phone call from our bank wishing us happy birthday, right?
