I won't tell that you swore!

Thanks for the lead-in, Bruce! And thank you, Robert for the excellent question and completely point!

In banking, there are more swear words than you will find in the Handbook for Drunken Frat Boys (I am making that up, and mean no offense to anyone!). And I am not talking about the typical four letter words. Our version of swearing include words such as SALES, PROFIT and COMMISSION. I am not afraid of those words and am doing my best, one client at a time, to change the way our industry thinks!

For eons, insurance agents and investment brokers have been associated with sales. Their compensation was primarily based on the number of clients and the types of products they sold in a given time period. As these business units started dabbling in banking, they found tremendous success in leveraging their current client relationships AND SELLING THEM BANKING PRODUCTS. I know this drives you nuts. It drives me nuts too...but for VERY different reasons!

Go back to the above paragraph and re-read the sentence that is italicized. Do you get it? That's where the lack of sales culture comes into play in the banking industry. Leveraging existing clients and maximizing the relationship. Some may call that sales, others will avoid the "s" word and call it customer service. I call it smart.

As bankers, we need to get better at that. Call it what you want, but in an environment of shrinking marketing budgets we are being asked to do more with less. This is a training function that will cost you very little but can increase profits tremendously! Your greatest investment should be in the way your highest performers are compensated. Salaries are overrated and generally overpaid. To compensate with no regard for goals, exceeded expectations or increased portfolios makes about as much sense as paying a teenager to sleep in. It's what they are expected to do and shouldn't be rewarded until they do something remarkable (like get out of bed before there are four digits on the clock!)

Robert, I could ramble all day about this topic...and I have some very strong opinions on this subject matter. But getting right down to your question, "what stands in the way?" The answer is simple: The Banker Mentality.

It is tragic that the industry I am most passionate about is also the slowest to change. You can ask a majority of the CEOs out there why they do the things they do and the answer will unfortunately be, "because we've always done it that way." The "if it ain't broken, don't fix it" frame of mind seems to hold much of the industry hostage. Banks will not experience unparalleled success until we, as an industry, break away from that thought pattern.

On the plus side, there are banks and credit unions that do very well. They embrace change, compensate based on goals vs. expectations, and spend the necessary time to TRAIN their employees that there is a difference between the plaid trouser used car salesperson and helping customers meet their financial goals.

Keep the ideas rolling :) We love to feed you the knowledge you are hungry for!

Make it an extraordinary day!

Jenna