In aviation, a preflight check is a list of tasks that should be performed by pilots and aircrew prior to takeoff. Its purpose is to improve flight safety by ensuring that no important tasks are forgotten. Failure to correctly conduct a preflight check using a checklist is a major contributing factor to aircraft accidents.
For the last ten years, the banking industry has wrestled with a stagnant economy, historically low interest rates, and a stiff regulatory environment. But the tide of forces squeezing margins could finally take a turn in 2017. In the U.S., a Trump presidency means the financial industry might find a sympathetic friend in the White House, and a Republican-controlled Congress will look at rolling back Dodd-Frank. As banks are gearing up in 2017 to launch their commercials sales team back into the market, shouldn’t they perform a preflight check on their commercial bankers? Here’s 3 skills that should be on your bank’s preflight checklist:
Skill #1- Business Credit Skills...Do your commercial bankers have the skills and knowledge needed to make sound business loan decision at every level? This includes being able to assess the business borrower’s character, understanding how the business operates, adhering to the bank’s credit policies and pricing guidelines, calculating operating cash flow and accurately identifying and analyzing sources of repayment.
Skill #2- Business Sales Skills...Do your commercial bankers have the understanding needed to sell today’s complex commercial bank product and services? This understanding includes being able to identify, research and get appointments with “high-valued” business prospects, and understanding industry and market trends. Business Sales Skills also included being able to conducting an engaging business conversations that build trust and credibility and advances the sales relationship.
Skill #3- Business Growth Skills...Do your commercial bankers have the skills to help businesses develop grow strategies? This includes providing strategies for how the business can increase their market share, branch out into new markets, expand and diversify their product lines and purchase or merge with other businesses.
Do your commercial bankers have the skills to pass this simple bank preflight checklist? If not, your bank has the potential for a major commercial banking accident.