Relationship Banking Is Key To Success

Focusing just on the bottom line guarantees failure

BY LISA J. OLIVER, SPECIAL TO BANKING NORTHEAST

ur personal uniqueness is the very basis of what makes relationship banking so necessary. We're all individuals with individual needs, goals, and dreams. We need to think of our customers the same way; after all they’re individuals too. And in a world that changes daily, we need to continuously reevaluate how we do business with each other. That's true whether you're a banker, a chef, or a small business owner.

Despite the myriad of incredible advancements in technology, particularly artificial intelligence, it's the human connections that are the most critical to driving our economy forward. The title of my talk is “Be Real, How Strong Relationships Drive Sales Success.”

But before I dig into this further though, I have to issue a disclaimer up front. Although I've been a salesperson my entire life, I never realized how many people consider the word sales or selling to be the Voldemort of banking. Shout out to all you Harry Potter fans, the thing that shall not be spoken, especially in the community banking world.

The only way I can understand why this may be is to believe that people have been trained to push product, create volume, hit sales goals, call targets, and it makes everybody feel a little dirty, devalued, a gun for hire. I challenge this perception. There are many things that go into the art of selling. And if I can give you more of a sense of ease as we get going, know that I don't like to sell, but I like to solve problems.

When a customer understands what you can bring to the table, not just in terms of available products and services, but as a relationship manager, someone who's always thinking about them, you're almost guaranteed to see a higher return on that relationship. Working hard to make it work will yield better results and we need to be go-givers, not go-getters.

If you're wearing a brand on a name tag

Oor your paycheck has a company name on it, every employee is a salesperson because it could happen over a backyard barbecue, it could be at an event. You are always representing whom you work with. We should always be asking the customer what they need and what they want by connecting the dots to past experiences with them. Or if they're a prospect asking questions that have to do with our knowledge of their industry or if we don't have that our research into their history.

Better Questions For Better Results

Make an effort every time asking better questions helps us better understand the goals of our customers, which means we can deliver the best possible service. Make it your goal to become a trusted problem solver, not a commodity, when asked who they rely on for service. Before a client makes a decision, I want them to make sure they call me. We often refer to this kind of customer-centric, proactive problem-solving approach as high touch. An effective tool to help you on this journey is a relationship review.

How do we differentiate ourselves in a fragmented overbanked market? We all need to listen first, then be well-armed with the knowledge, training tools, and resources to effectively communicate solutions to our clients and prospects. And we all recognize that we're not the only ones providing financial advice, right? Remember the thing called the Internet or the Google, as my mother calls it? Any guesses as to what percentage of a customer's journey is done digitally? Anybody have an idea? 67%. That means before a customer ever says a single word to you, they've likely already been exposed to products they may have already.

They may already think they know which product they're going to pursue and maybe the product they're pursuing is the best one for them. But what if it's not? What if they're thinking only about short-term needs without understanding or considering longterm impacts? What if their needs of today are going to be different from their needs of tomorrow? Acknowledge when they're right, when they have the right solution. And offer facts to teach them about other alternatives. Expecting nothing in return.

Did you know that according to one report I read, 42% of salespeople feel as though they don't have enough information before making a call to a customer or prospects? Now if the call is missing information, then it's OK. But what if the team member is calling to offer solutions to the customer? How do you think that conversation is going to go if they don't feel prepared? Probably not.

Well, in fact, the same report will also tell you 85% of prospects and customers are dissatisfied with their phone experience. It's not because the salesperson is rude, or maybe they are and that's a whole other conversation. It's likely because they don't receive regular coaching through one-onones and pre-call planning before they actually get out there in order to achieve a high-touch, solution-focused relationship.

Research shows that for every dollar invested in sales training, you can expect $29 in incremental revenue. Seems like a pretty good investment to me.

ADVISORS, NOT SALESPEOPLE

If we can work with our teams to better understand relationship banking to become advisors, not salespeople, to become expert service providers, then the production will take care of itself. I promise you that much like we want our teams to focus on the individual goals of customers, we too should be focused on the individual professional and personal gains of our team members. What is it that your team members want to be better at doing? How can we help them reach those goals? What plans can we put in place to ensure they remain focused and on track to be successful? Why do they come to work each day?

It's important to understand the numbers and it's important to get to the numbers, but getting to the numbers for number sake is not the way to do it. We have to be hyperfocused on the activity and the value of delivering more to our clients. If we don't and we only focus on the numbers, it'll [undo] the foundation or the culture on which we're trying to better serve our clients.

So going back to the hiring process for a moment, I threw out a question earlier, but one of the questions you should ask candidates when you're hiring is why they're interested in the bank. Most are probably going to say something like, I want to help the bank become more successful. Some might say, I'd like to take my income to the next level, but you want the ones who say, “I want to help solve problems. I'm looking to help the bank build stronger relationships with clients.” Follow up by asking for an example. Use your behavior-based interview tactics to ask for an example of a customer that they worked with whom they helped achieve their dreams.

If they're good salespeople, they're going to get that question and they're going to be able to answer it for you. And when it comes to coaching, here are five things to consider. I can't expect my teams to do what I'm not willing to do or try to do or try and fail to do. Demonstrate good and bad conversations. Focus on weak areas and exhibit better ways to perform in certain situations. Make sure you give and get clear directions and instructions. Role play. You're better when you practice as your team works its way through the learning process, which never ends by the way. Let them put their new knowledge to the test.

I remind them that I'm not going to save them as a coach. You can't save the salesperson. You have to let them try and fail and pick them up.

Moving Forward

What is the plan of action moving forward? What successes can be built upon? Where are their knowledge gaps? Presentation challenges? How can more teamwork help to make the lives of our sales teams and, thus our clients more productive and with better outcomes?

If you build strong relationships, your customers will gladly refer others to you. The strongest relationships are your best ambassadors who will tell their connections to call you before they are even asked.

Our goal when networking is to build a relationship through common interests. If we're all bankers in a room, what else is different? Talk about dogs. Talk about wine. Talk about sailing. Talk about sports. Talk about vacations. Be of interest. Be interested in what others are doing and determine through that process. And interesting facts. Yes, matching your expertise with their needs. It won't happen in one encounter. Think about how you could improve that introductory comment to be an interested and interesting person to nurture these relationships.

As you build your network, you'll be less reliant on yourself sourcing business and your network will do it for you. You go from being someone who has to cold call and drive new business to a network person whose phone just rings.

How do we know when we've succeeded in relationship building? We get referred to others. We're on the list of most trusted advisors. The biggest indicator of developing a trusted relationship is that we're not a commodity. Said another way, we're not the lowest price. We provide value through ideas and solution and speed and knowing our customer inside and out. We're invaluable and therefore we're worth 15 basis points, 25 basis points, maybe a whole percent more in pricing for the value received.

Creating this culture is rooted in our ability to avoid a short-term transactional relationship and build on a long-term strategic engagement. Remember the goal is to be a trusted advisor who knows and anticipates the customer's needs and can be thinking proactively on their behalf is what we should be aiming for. It takes time to get there. But if you invest the time and get to know the customer, the relationship will continue to pay dividends for a long time. Short-term selling may result in higher quantitative sales metrics up front, but it'll come with lower pricing and lower revenue.

Long-term relational business development where clients are apt to refer you to others is the ideal environment. And one additional thought: don't desperation sell. Everybody else is making deals. I have to go find a deal. OK, I'm going to just go say I'll get the lowest rate. And you come back to the bank and you beg for the lowest rate and you bring this client in.

Guess what? In a heartbeat that client leaves for the next lowest rate and you haven't developed a relationship. I had a boss say to me once, "The reason you win a deal is the reason you're going to lose a deal." And if you want a deal, because you are the lowest rate, as soon as there's a lower rate, that person's gone. If you win a deal because of a relationship and you add value and you get the ultimate, which is that person, that client pays more to bank with you even a little bit and doesn't go with the lowest rate. That client will stay with you because you add value, not go to the next lowest rate.

Lisa J. Oliver is the president and CEO of The Cooperative Bank of Cape Cod (The Coop). She is the first female CEO in its 100year history and in 2020 was named the bank’s first chair of the board of directors. The above comes from remarks she made at the 2022 Women in Banking conference held in Newport, Rhode Island.

Clearview FCU Names Florian First Female President

The Clearview Federal Credit Union, based in Moon Township, Pa., announced that Lisa Florian will be the first female president and CEO in its history, effective April 1. Florian's appointment to the Clearview helm follows the announcement of the departure of the current President & CEO, Ron Celaschi, who will retain the position and aid with the transition until March 32..

Florian currently serves as senior vice president, member experience, digital strategy, and marketing, a role she was promoted to in 2020. Florian has been with Clearview since 2015, holding the positions of vice president, member experience and marketing, and vice president, finance and assistant vice president, strategic research and analysis. She has over 25 years of experience in the financial services and credit union industries.

Florian is active in her community, currently serving on the West Jefferson Hills Foundation for Education Board and Thomas Jefferson High School Football Boosters Board. She has also served on numerous committees for nonprofits in the greater Pittsburgh region and spends time volunteering throughout the year.

"I am very excited and honored to be chosen by our board of directors as the next president and CEO of Clearview," Florian said. "I look forward to building on the foundation of providing financial solutions that help our members enjoy a better life and leading Clearview to continued success and growth."

As president and CEO, Florian will focus on the brand's evolution while remaining committed to building a community and member-forward culture, increasing access through digital channels, and implementing continuous improvement through organizational leadership.

Cenlar Names Daras CEO & President

D. James “Jim” Daras has been named CEO and president of Cenlar FSB, the Ewing, N.J.-based financial institution announced.

“Jim is an accomplished and exceptional executive leader with a great deal of experience who will ensure Cenlar continues its commitment to providing high-quality service to our customers,” said Chairman of the Board Dave Applegate.

Daras has more than 40 years in the banking and mortgage banking industry. He has extensive knowledge in risk management, banking and corporate finance functions, bank restructuring, company start-ups and venture capital investing. He worked at Cenlar from 1985 to 1990, leaving his post as chief financial officer to join Dime Bancorp in New York City. Until returning to Cenlar in 2015, Daras worked with several venture capital firms investing in financial services companies, including Loan Servicing Solutions in 2007, where he served as CEO. Daras was executive vice president and was appointed chief risk officer at Cenlar. In 2019, he moved to an advisory capacity before returning full-time to manage the company’s banking functions. He joined Cenlar full-time in 2022 as executive vice president to manage the company’s banking functions.

Last summer, Daras and Executive Vice President and Chief Operating Officer Robert “Rob” Lux were both appointed co-CEO after Chairman of the Board, President and CEO Greg Tornquist announced his retirement from Cenlar. Lux will continue in his role of COO reporting to Daras.

Patriot FCU Names Celaschi To Top Spot

Ronald Celaschi has been named as the new CEO at Patriot Federal Credit Union in Chambersburg, Pa. Celaschi will join Patriot on April 3 and succeed Brad Warner.

Warner, who has over nine years of service at Patriot, including as the credit union’s CEO since 2015, announced his intention to retire in August 2022. He has spent over 43 years in the financial services industry, including over 30 as a credit union CEO. He is assisting Celaschi in the transition.

“I want to take a moment to thank our board of directors for their many hours of hard work; but most importantly for an excellent selection,” Warner said. “Ron embraces the Servant Leadership philos- ophy and he is looking forward to beginning his new role at Patriot.”

Celaschi has more than 31 years in the credit union movement. During his career, he spent over 14 years at the Pennsylvania Credit Union Association (PCUA), where he was a senior planning consultant for members of the credit union league. He became CEO of Frick Tri-County Federal Credit Union in 2005, a post he held for three years before joining Clearview Federal Credit Union as vice president – lending. Celaschi also served as senior vice president – lending and operations before taking the helm at Clearview as president/CEO in 2018.

A graduate of Indiana University of Pennsylvania (IUP) with a Bachelor of Science degree in business administration/ finance, Celaschi completed his Master’s degree in business administration from California University of Pennsylvania. He and his wife, Tricia, have two children.

Rockland Trust Company, Independent Bank Corp. Appoint Tengel To CEO

Rockland Trust Company and its bank holding company parent Independent Bank Corp. announced the appointment of Jeffrey J. Tengel as the successor to current CEO Christopher Oddleifson.

The Massachusetts financial institution said Oddleifson has served as the bank’s CEO since 2003. Under his leadership, Rockland Trust has grown total assets from just over $2 billion to nearly $20 billion and expanded from its southeastern Massachusetts roots to a bank with over 120 retail branches, commercial and residential lending centers, and investment management offices.

Tengel most recently served as senior executive vice president, head of commercial specialty banking at M&T Bank. Prior to M&T’s recent acquisition of People’s United Financial, Tengel was president of People’s United where he was responsible for commercial banking, retail banking, and wealth management. He joined People’s United in 2010 from PNC Bank where he worked following PNC’s acquisition of National City Bank. At National City, Tengel served as executive vice president of corporate banking, managing the specialized industry, capital markets, commercial real estate, equipment finance, and private equity business lines

Union Savings Bank Names Chelen Reyes President

Union Savings Bank, a Danbury, Conn.based community bank, announced that Chelen Reyes is the bank’s next president.

“As we conducted our search for the next president of Union Savings Bank, Chelen rose to the top, embodying so many of the qualities we believe are necessary to lead this institution well into the future,” said Lucie Voves, USB’s board chair.

Reyes will be responsible for managing the day-to-day operations of the bank, which has 25 branches in Connecticut. He comes to Union Savings Bank from Hudson Valley Credit Union, where he served in a number of executive roles - most recently as HVCU’s senior vice presidenthaving responsibilities for retail delivery, marketing and lending.

In his two decades in banking, Reyes has held positions in retail banking, lending, wealth management, and marketing with institutions of varying sizes. He has led numerous initiatives focused on strategic growth, new product rollouts, customer relationships, compliance, and training for employees. Prior to beginning his banking career, Reyes worked in the technology sector.

Reyes succeeds Cynthia Merkle as president. Merkle will maintain her CEO role until her retirement later this year.

“I’m excited about the opportunity to join Union Savings Bank, and I’m incredibly thankful to the bank’s leadership for placing their faith in me as their next president,” Reyes said. “Cindy [Merkle] and those who held this position before her have brought incredible success to USB; I hope that I’m able to do the same.”

Reyes graduated with a degree in management from De La Salle University in Metro Manila, Philippines, and holds a Master’s in Business Management from the Asian Institute of Management in Makati, Philippines.