Lending

Growing Business Loans After the Recession

A five-step approach for making more small-business loans.

November 07, 2013
/ PRINT / ShareShare / Text Size +

GrowingBusinessLoans-001.jpg

"Bankers are spending too much time at their desks and not enough time out with their small-business accounts," says Charles Wendel, president of Financial Institutions Consulting. Wendel spoke Tuesday at BAI's 2013 Retail Delivery Conference in Denver.

"Following the recession, banks have created a very narrow box within which they'll lend," Wendel says. "That has created an opportunity for other lenders to come in and make those loans."

Wendel gave this five-step approach for making more small-business loans:

  1. Define your focus through differentiation (but not on price). "Your institution can differentiate itself on its relationships with its clients, its industry specialization, or its product expertise," says Wendel.
     
  2. Organize for success. Can your branches recognize quality loan opportunities? Is branch staff adequately trained? Do branches operate with loan liaison contacts?
     
  3. Develop an efficient infrastructure. Reduce and simplify your products, evaluate all internal processes, outsource when possible, establish a consistent brand.
     
  4. Determine key metrics. Identify internal and market needs. Who needs to be involved in setting metrics? What are the right metrics and who enforces them? When should you change metrics? What does the scorecard look like?
     
  5. Create guiding principles for lending execution. Involve senior management. Agree on consistent job definitions. Implement a rigorous sales-management system. Don't place current staff in business lending positions.

View more coverage of BAI's 2013 Retail Delivery Conference.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive