If you work at a bank right now (fall 2022), you are deep in the throes of strategic planning, budgeting or whatever your CFO calls it! As a former banker, my sympathy goes out to you (and, I hope your “cycle count” stays manageable!).
When we ran this process at my former bank, there were two foundational concepts that we always reviewed with the Executive Team and Board:
So, as bank leaders are thinking through resource allocation for next year and beyond, there is unmistakable opportunity at the intersection of Business Banking having high growth potential and Advisory services as a way to stand out and win.
And, we don’t have to look far to see validation of this thesis. The mega-banks are investing heavily in this area to grow market share: BAC has Cashflow Monitor, PNC has Cash Insights, and US Bank recently announced Cashflow and tools for business customers. These offerings are clearly becoming table stakes for banks to attract and retain Business customers.
Further, the need for banks to provide these tools was perfectly underscored by the recent JD Power’s Business Banking Satisfaction Survey. They found 76% of Business owners want advice from their bank, but only 15% are getting it!
As bank leaders and executive grind through the planning season and look for “no regrets” investments to drive growth and profitability, they should give heavy consideration to providing/expanding advisory services and tools to Business customers.
At Monit, we continue to help banks realize significant results in this area. As an example, one of our bank customers ran an analysis of business customers using our cashflow forecasting and guidance tools and noted those business grew deposit balances by ~60% and lending balances by ~30% in just one year. One bank is also using Monit’s analytics to monitor their portfolio’s credit health as we navigate a choppy economy. For details on how the Monit team can accelerate growth (and, compete with the big banks) in your Business Banking segment, please reach out to email@example.com!