If you have been with the same bank using the same style of account for many years, now might be a good time to review your banking strategy.
What is the role of a bank in regards to business? Over the years, the role of banks has changed significantly from being very product and service based business to now being very solution based. Over the past few months we’ve gone through the process of reevaluating our banking needs and moving to a new banking provider and we’re very happy with the benefits we now receive by having gone through the process.
Start by assessing which bank or banks have the services you require and their value and service proposition. Gone are the days when it was necessary to stay with a bank for life to get better service. Banks are keen to get your business and compete by offering lower fee options, which due to ongoing competition, are continually reviewed to attract more customers.
The total banking solution we were offered included:
- Senior relationship managers to manage our account
- Restructured lower rate loan facility reducing our repayments by over 30%
- Additional lump sum for business development purposes
- Flexible Overdraft facility
- Rental bond finance
- Revolving credit card facility
- Ability to have multiple accounts for our business (operating, profit, BAS etc) without incurring multiple account fees
- Discounted personal banking services including variable rate home loans and credit cards
- Up to 90% LVR borrowing on home loans without mortgage insurance
- Above market rates on personal term deposits
- Pre-approved personal finance for purchase of primary goods
- The ability to introduce our friends and clients to the bank and for them to receive deals not available to the general public
The last point is an interesting one to ponder for any business. The best source of new customers is prospects referred by your existing customers. What’s your business referral strategy.
At first it might seem like a hassle to change banks, but when you look at the long-term benefits from paying lower fees, a more flexible banking option or a relationship manager to help you bettter structure your business finance, it could just be worth a few hours of your time.