Why a relationship-managed approach to banking matters

Expert view

Alasdair Swan, Senior Commercial Manager at The Cumberland

The cost-of-living crisis represents a significant challenge with the exponential rise in prices affecting the hospitality industry two-fold

Firstly, consumers have less money to spend To compound this issue, businesses must now cope with their own rising costs, with those in the sector facing an average increase of 55 2 per cent in operating costs

Difficulties don t ju stop at rising costs, however, with staff shortages and retention in the sector remaining significant hurdles for hospitality business owners

So it s never been more important for banking institutions to support customers through a m targeted, human appro providing a relationship managed service

At The Cumberland, we take this approach to ensure we understand and build relationships with the businesses that we work with so that we can provide support for them during any situation, good or bad

Customers have grown weary of the centralisation of banking operations They ve grown tired of call centres instead of having direct access to an expert who understands their case

Taking the opposite approach, with a model which places an emphasis on building a relationship between the finance provider and the client, is something which will stand both parties in good stead Relationship managers place the client first, taking an interest in every aspect of their business

Relationship managers don t just navigate usiness situations for eir clients, they spend with customers and e support when it’s most cting as a safeguard tially choppy waters the client hasn’t recognised yet

By creating a genuine, human rapport, customers know they have direct access to their relationship manager or an associate so they can contact someone who understands their business whenever their need arises As a result, issues can be dealt with quickly and efficiently

While the hospitality sector is set to face further challenges, it doesn t mean owners and operators should go it alone It is the banking institutions who provide a people first approach who will be best placed to support existing and prospective customers

Get one step ahead

In the face of rising costs and an unpredictable market, businesses would benefit from having a plan and taking early action n Have a plan: Keeping control of cash flow is a vital aspect of any business The best way to do this is through detailed business planning, so you can foresee any problems and take action early n Review your costs: It may be necessary to reconsider the suppliers you are using or renegotiate prices and payment terms with your current supply chain n Take action early: If it looks like you may need help with cash flow, it s important to get in touch with your bank or lender early This can give you time to access finance or renegotiate the arrangements for your repayments